Global Real Assets - November Commentary
Portfolio Manager, Real Assets
This is a marketing communication. Please refer to the prospectus, supplement and KID/KIID for the Funds before making any final investment decisions. The value of this investment can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you invested.
Past performance does not predict future returns.
The widely expected US government shutdown commenced in early October and has since gone on to become the longest federal government shutdown in history. Despite the ensuing uncertainty and absent production of a wide range of economic data, markets broadly shrugged off concerns and the steady reduction in government bond yields continued during the month. With inflation remaining stubborn and economic growth remaining sluggish in many economies, the forward path for policymakers remains delicate, particularly in the context of upcoming fiscal events such as the UK budget in November.
The convergence of Infrastructure and Real Estate
One area to which infrastructure investors are paying increasing attention within this context is the growing convergence between traditional infrastructure and certain aspects of the real estate market. This convergence is being driven primarily by mega-trends that are affecting areas that might have been viewed by investors as separate in the past.
AI infrastructure is the largest and most obvious of these ‘convergence themes’. The expansion of data centres worldwide requires investment across traditional infrastructure sectors, such as utilities and power production, to increase power availability and support grid resilience. At the same time, securing the land and developing the data centres themselves remains a more obvious real estate play. One cannot succeed without the other, and infrastructure investors are recognising this.
Additionally, the broader backdrop is that the traditional qualities and characteristics of infrastructure assets – such as contractual cash flows, inflation linkage, high-credit counterparties and inherent criticality – are increasingly visible in select areas of real estate, particularly where supported by structural demographic changes.
In this commentary, we discuss the shifting relationship between Infrastructure and Real Estate, and news from holdings in the portfolio.
The value of this investment can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you invested.
Guinness Global Investors offers a range of specialist, quality funds that focus on compelling global investment areas and ideas for long-term investors.
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Guinness Global Real Assets Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the Supplement, the Key Investor Information Document (KIID), the Key Information Document (KID) and the Application Form, is available from the website www.guinnessgi.com , or free of charge from:
- the Manager: Waystone Management Company (IE) Limited 2nd Floor 35 Shelbourne Road, Ballsbridge, Dublin DO4 A4E0; or,
- the Promoter and Investment Manager: Guinness Asset Management Ltd, 18 Smith Square, London SW1P 3HZ.
Waystone IE is a company incorporated under the laws of Ireland having its registered office at 35 Shelbourne Rd, Ballsbridge, Dublin, D04 A4E0 Ireland, which is authorised by the Central Bank of Ireland, has appointed Guinness Asset Management Ltd as Investment Manager to this fund, and as Manager has the right to terminate the arrangements made for the marketing of funds in accordance with the UCITS Directive.
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https://www.waystone.com/waystone-policies/
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In countries where the Fund is not registered for sale or in any other circumstances where their distribution is not authorised or is unlawful, the Funds should not be distributed to resident Retail Clients. NOTE: THIS INVESTMENT IS NOT FOR SALE TO U.S. PERSONS.
Structure & Regulation
The Fund is a sub-fund of Guinness Asset Management Funds PLC, an open-ended umbrella-type investment company, incorporated in Ireland and authorised and supervised by the Central Bank of Ireland, which operates under EU legislation. The Fund has been approved by the Financial Conduct Authority for sale in the UK.
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