A Swiss investment boutique, Quaero Capital, has refocused its Real Assets fund to focus on infrastructure.
The move means Quaero’s Luxembourg Ucits fund is moving away from previous holdings in real estate, forestry and agriculture.
The firm said its research suggested a “potential slowing in growth in real estate values, while the universe of agriculture and forestry stocks is shrinking”.
Infrastructure, meanwhile, has better prospects in the current environment which is seeing many governments expand infrastructure development to boost economic growth, Quaero said.
Managed by Mark Ebert and Christopher Gelli, some 90% of the Real Assets fund is already allocated to infrastructure stocks globally, and this will move to 100%.
Ebert said: “For investors, the growth fundamentals in certain infrastructure sectors continue to be attractive. As interest rates start to normalise, investors may gravitate away from investing in infrastructure solely to capture yield and focus instead on infrastructure companies which reinvest their earnings in high return projects.”
He said this was how Quaero had approached the sector for the past four years.
Existing investors had been approached about the change of focus and were supportive of the move, Ebert said.
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