Investments in infrastructure lead to a robust economy and a diversified investment portfolio.
In the ever-evolving landscape of global finance, a growing number of investors are turning their attention towards funds that focus on improving city living and reducing environmental impact. One such fund is the Pictet SmartCity P EUR, managed by Pictet Asset Management.
Ivo Weinhoerl, the fund manager, invests in companies that organize life in "Smart Cities", spanning mobility and transport, infrastructure, real estate, sustainable resource management, and services to support an urban lifestyle. The fund's portfolio includes notable companies such as Vonovia, Visa, Segro PLC, Autodesk, and Home Depot. The fund's exciting potential lies in the megatrend of urbanization, a trend that is expected to continue shaping the future of cities worldwide.
As the pandemic eases, the entire sector could gain new momentum, especially with the need for infrastructure improvement in various regions. This is particularly true for renewable energy, a focus of the KBI Global Sustainable Infrastructure Fund F EUR Dist. This fund, managed by KBI Global Investors based in Ireland, focuses on infrastructure assets for renewable energy. The fund's largest positions include Iberdrola and Greencoat Renewables from Ireland, the latter primarily acquiring and managing operational wind farms in Ireland.
The infrastructure sector is a crucial component of societal and economic activities, encompassing roads, railways, airports, mobile networks, water supply, and digitalization. In the digital sphere, digital infrastructure providers, such as mobile tower operators and digital payment providers, thrived during the pandemic. The Morgan Stanley INVF Global Infrastructure Fund (USD) A, a long-term successful fund, recognizes this trend. Managed by Morgan Stanley Investment Management, the fund's portfolio consists of 56 companies, with American Tower (over 8%) being heavily weighted, operating over 170,000 sites worldwide, mostly towers.
However, the year 2020 was a mixed year for the infrastructure sector, with some areas facing challenges while others experienced growth. The Covid-19 pandemic negatively impacted some parts of global infrastructure, particularly airport and toll road operators, as well as the travel industry. Yet, the telecommunications sector required significant investments and the expansion of the 5G standard to handle growing data transfers.
Looking forward, global infrastructure is facing changes, including population growth, urbanization, increasing energy and water demand, the shift towards renewable energy sources, and the transition in the transport sector towards alternatives like electricity and hydrogen. In the United States, President Joe Biden plans to spend over a trillion dollars to improve American infrastructure. This investment could provide a significant boost to the sector, particularly in renewable energy and digital infrastructure.
One such fund that could benefit from this investment is the Pictet SmartCity P EUR, which has seen a 10-year value increase of 140% since its launch in May 2010. The fund's success, combined with the promising future of the infrastructure sector, makes it an exciting prospect for investors seeking long-term growth.
