Downing Fund Managers has launched an open-ended income fund that targets infrastructure and renewable energy investment trusts listed on the London Stock Exchange.
The Downing Listed Infrastructure Income fund will invest in a diversified portfolio of trusts across five areas – utilities, renewable energy, social infrastructure, transport and digital infrastructure.
The fund is invested in 39 trusts currently, with core holdings including Primary Health Properties, HICL Infrastructure and the Renewable Infrastructure Group.
The infrastructure sector has enjoyed explosive growth in recent years, forming a key tenet of the UK government’s plans to ‘Build Back Better’ post-Brexit and Covid and meet its net zero targets. But traditionally investment in this area has only been accessible via private, unlisted funds available to large institutional investors, said head of Downing Fund Managers Judith Mackenzie.
“This fund opens up the asset class to a much wider investor base,” she said. “By offering an open-ended structure that invests in a portfolio of both established and newer, more niche investment trusts at a low cost, the fund offers an attractive source of inflation-adjusted income over the long term, with asset backing supporting capital values through economic cycles.”
The fund will be run by Josh McCathie (pictured), who currently manages the £42m Downing Small and Mid-Cap Income fund.
The minimum investment is £1,000 and the fund has no initial or exit charges, with costs capped at an ongoing charges figure (OCF) of 0.40%.
