Over the last 12 months, Investec Wealth & Investment (IW&I) has increased its clients’ overall exposure to infrastructure funds by over GBP40 million (US$61 million), and by GBP60 million over the last two years.
IW&I has invested in new share issues launched by four of the largest publicly quoted infrastructure funds: GCP Infrastructure (GCP), International Public Partnerships (INPP), John Laing Infrastructure (JLIF) and HICL infrastructure (HICL), in the past nine months, reported Wealth Adviser.
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Infrastructure funds are, reportedly, gaining popularity consistently because they offer a "healthy dividend" with a long-term income stream that is partly inflation-linked.
Chris Hills, chief investment officer at IW&I, said: "With government bond yields and base rates remaining at rock bottom, infrastructure is providing a welcome source of income for many investors and we expect the sector to continue to perform solidly over 2013.
"However, investors are likely to be better off by investing in a secondary issue at close to net asset value rather than buying existing shares in the market at a premium."
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