AFFIN Hwang Management Bhd recently launched its World Series – Global Infrastructure Income Fund that provides investors access to global income opportunities through listed infrastructure assets.
The wholesale feeder fund will feed into a collective investment scheme, namely Legg Mason ClearBridge Global Infrastructure Income Fund, investing a minimum of 80% of the fund’s net asset value (NAV) into the target fund and a maximum of 20% into money market instruments, deposits and/or cash.
“More cities and governments are looking at prioritising maintenance, facility upgrades and embracing sustainability in its public goods and utilities. This is expected to drive infrastructure spending globally including investments in electricity supply and efficiency, renewable energy generation as well as wireless towers with the advent of 5G.
“Coupled with a rapid urbanisation rate and the emergence of more mega cities, infrastructure spending could see a further uplift as governments ramp-up fiscal spending to support global recovery and decarbonise cities,” said Affin Hwang AM chief marketing and distribution officer Chan Ai Mei.
“The fund provides an additional source of diversification to investors through exposure in infrastructure assets that are often regulated and have long-term contracts, where asset lives are typically measured in decades, offering greater stability to investors,” he continued.
Meanwhile, ClearBridge Investments portfolio manager Shane Hurst explained that infrastructure is a multi-decade secular growth cycle, where the assets will play a pivotal role in the path of net-zero emissions, which means that trillions of investment dollars will need to be made over the coming decades, underpinning the allowed returns and dividends.
“This will likely drive the asset base growth of these companies and provide tailwind for infrastructure investors seeking income and the potential for capital appreciation.
“The strategy aims to provide investors with long-term inflation-linked capital growth over an economic cycle with a focus on providing reliable income targeting 5% p.a., net of fees,” Hurst explained.
The fund is suitable for Sophisticated Investors who seek capital appreciation, have a medium to long-term investment horizon and have a high-risk tolerance.
It is offered in four currency classes, namely USD Class, MYR-Hedged Class, SGD-Hedged Class and AUD Hedged-Class. The minimum investment amount is US$5,000 for all listed currency classes.
Investors are advised to read and understand the contents of the fund’s Product Highlights Sheet and Information Memorandum dated Dec 21, 2021 before investing. – Jan 24, 2022
