New research among financial advisers and wealth managers commissioned by TIME Investments, which specialises in infrastructure, long income property and other asset-backed investments, shows that 42 per cent (of the advisers’ surveyed) said their clients are now investing in infrastructure such as renewable energy, utilities, transport and logistics and social infrastructure. The findings reveal that over the past twelve months a third (34 per cent) have seen their clients increase their exposure in this area, 40 per cent said it has not changed, and just 26 per cent said it had fallen. Almost two thirds (60 per cent) of advisers are predicting an increase in investing in infrastructure related assets this year.
When asked to identify the most important driver for the diversification into infrastructure, 22 per cent of advisers said it is investor concerns over ongoing economic uncertainty, followed by concerns over the Brexit deal (14 per cent), on-going stockmarket volatility (10 per cent), poor returns from bonds (10 per cent) and a desire for predictable income (10 per cent).
In order of importance, advisers identified the following benefits of infrastructure investments for investors: 20 per cent said the attractive risk-adjusted returns are the most important, followed by capital growth and lower volatility (14 per cent), predictable income generation (12 per cent) and inflation and interest rate protection (10 per cent).
The research findings also showed that half of advisers believe that investors are more likely to invest in UK infrastructure, compared to 28 per cent in global infrastructure.
Stephen Daniels, fund manager of TIME:UK Infrastructure Income, says: “Investors are increasingly turning to infrastructure investments which offer attractive risk-adjusted returns versus equities and fixed income investments. The Government’s commitment to infrastructure spend will also make the sector even more attractive.”
The open-ended Fund, TIME:UK Infrastructure Income, previously known as TIME:Defensive Income Securities, was launched two years ago to provide investors with an opportunity to access the growing UK listed infrastructure sector. This sector benefits from a consistent income return and capital growth prospects, while diversifying away from traditional assets. It is actively managed and invests in a well-diversified portfolio of high-quality asset-backed infrastructure, renewable energy and real estate securities.
TIME:UK Infrastructure Income generated a total return for total twelve month period to 31 January 2020 of 9.68 per cent (based on Accumulation Shares), inclusive of income of 4.91 per cent and capital gains of 4.77 per cent.
The change of name has been made to better describe that the fund invests primarily in asset-backed securities exposed to the UK infrastructure, renewable energy and real estate sectors.
The unique and proven investment process utilises a combination of active and factor-based investment strategies to identify assets which offer attractive dividends, lower correlation, better liquidity, capital growth potential and lower volatility.