The selloff and derating of listed infrastructure funds have attracted the attention of new institutional investors, with Rathbones’ multi-asset fund managers David Coombs and Will Mcintosh-Whyte making their first purchases in the sector during last October’s market lows.
They told Citywire they added a basket of core infrastructure funds including HICL Infrastructure (HICL), International Public Partnerships (INPPS) and debt fund GCP Infrastructure (GCP), as well as The Renewables Infrastructure Group (TRIG), attracted by their government-backed, inflation-linked revenues and the liquidity of big funds.
The pair turned their attention to the sector when double-digit discounts first emerged a year earlier following 2022’s disastrous mini-Budget. UK government bond yields shot up in response to the uncosted spending and borrowing plans of short-lived prime minister Liz Truss and her chancellor Kwasi Kwarteng.