Investing in digital infrastructure enables investors to capitalise on the “fourth industrial revolution”, according to Gravis head of real estate securities Matthew Norris.
In the latest Portfolio Adviser video interview, Norris, who is lead adviser on the recently launched Gravis Digital Infrastructure Income fund and Gravis UK Listed Property fund, explains what digital infrastructure is and why it is so important for the future.
“Digital infrastructure is everything that enables the digital world,” he says. “So, right now we’re living in the fourth industrial revolution; this is a revolution of data, Big Data and of artificial intelligence. It is revolutionising our lives, it is changing the way we work, we play and we live.”
Digital infrastructure includes assets such as data centres, smart networks, telecoms towers, 5G networks, logistics and distribution centres.
Norris says the best way to access this theme is through a diversified portfolio of Reits that own digital infrastructure assets because it avoids the liquidity issues seen with open-ended funds.
He also touches on why it does not invest in areas like software and payments systems and why the contractual nature of the rental income with physical assets is attractive.
“We love the certainty of income that comes with owning a tangible asset,” he says.
The fund, which launched at the end of May, has amassed £20m in assets.
Watch the video above for more.