VT Downing Listed Infrastructure Income Fund

The VT Downing Listed Infrastructure Income Fund provides low-cost (in relation to comparable funds) access to the UK listed infrastructure and renewable energy investment trust universe. The diversified portfolio aims to provide an attractive yield through exposure to a mixture of utilities, renewable energy, social infrastructure, transport and digital infrastructure assets.

Discovering the VT Downing Listed Infrastructure Income Fund

Your capital is at risk and you may not get back the full amount you invested. Investments in this fund are for the long term and higher risk compared to investments solely in larger, more established companies. Please read full details of the risks here.

Key features

  • Low-cost1 low-touch approach: To access the UK listed infrastructure and renewable energy investment trust universe.
  • Diversification: This fund of funds invests in a diversified portfolio of UK listed investment trusts with exposure to thousands of individual infrastructure projects spanning five core areas.
  • Highly visible income: The fund targets sustainable and regular dividends, distributed quarterly to shareholders. This is supported by the large degree of contractual and regulated terms with high quality counterparties, which offers more clarity on long-term cash flows.
  • Inflation-adjusted: Long-term agreements, often with revenue streams that are linked to inflation, may offer protection from inflation erosion and aids the ability to grow dividends in real terms. 
  • Supports essential services: Supports funding into essential services for society and the economy. Every £1 spent on infrastructure creates £2.92 of wider economic benefit2.
  • Distributions: Quarterly  
  • Structure: UCITS 
  • Ongoing charges3: 0.40% 

1In relation to comparable funds.

2https://www.cbi.org.uk/media-centre/articles/private-sector-can-help-deliver-uks-infrastructure-revolution/

3Ongoing charges figure (OCF) – the OCF shown here is an estimate of the charges and may vary from year to year. It excludes portfolio transaction costs which are borne by the Manager. The funds annual report for each financial year will include detail on the exact charges made.

What do I need to know before investing?

  • Where and how is my money invested?

    Infrastructure is the essential physical and organisational structures and facilities needed for the operation of societies and economies. This includes: 

    Utilities - such as gas, electricity and water 

    Energy – often renewable energy generation, energy storage and energy efficiency solutions  

    Social Infrastructure – includes assets such as hospitals, GP surgeries and assisted living properties

    Transport – such as roads, railways, airports, stations and ports 

    Digital – the infrastructure that drives the digital economy, such communications, optic cables, data centres and cell towers 

    Investment in infrastructure supports the ongoing effort to improve the essential services and assets that are needed for the operation and sustained growth of our societies and economies. For investors, investment in infrastructure can provide a source of compelling income that has a high degree of visibility and inflation adjustments to promote growth in real terms. Also, the asset backing of underlying assets and contractual cashflows with strong counterparties support capital values through the economic cycle. Investing in this fund provides investors access to these characteristics, but in a diversified, low cost*, unconflicted and open-ended structure.  

    * In relation to comparable funds.

  • What is the investment process?

    The VT Downing Listed Infrastructure Income Fund is a 'fund of funds' investing only in LSE listed investment trusts. The criteria for inclusion in the fund are investment trusts focused on one or more of the five infrastructure areas – utilities, renewable energy, social infrastructure, transport and digital infrastructure. 

    Our low-touch investment process:

    1. Begins by screening the London listed investment trust universe for the infrastructure and renewable energy sectors. 
    2. We then classify these trusts by market-cap and exclude any holding that is less than £100 million.
    3. Next we allocate 6% to the five largest positions, 4% to the next five, 3% to the following five, 2% to the next five, then the remaining 24% is split evenly among the remaining smaller holdings, with 1% retained in cash. We believe that this allocation process strikes the right balance of diversification, liquidity and return potential. 
  • What are the risks?

    Our funds are not suitable investments for everyone, so we recommend seeking financial advice. This fund may not be appropriate if you plan to withdraw your money within five years. As with all investments, there are risks that you should be aware of and comfortable with before you invest. 

    The value of your portfolio can go down as well as up so your capital is at risk and there is no guarantee you will get your investment back 

    Any income received from your investment can rise and fall. 

    External factors can cause an entire asset class to decline in value, which would result in a decrease in the value of investments. 

    The past performance of a fund is not a reliable indicator of future results. 

    The fund can conclude various transactions with contractual partners. If a contractual partner becomes insolvent, it can no longer or can only partly settle unpaid debts owed to the fund. 

    The fund may invest in overseas securities so movements in exchange rates may cause the value of your investment to increase or decrease. 

    Adverse market conditions may affect the ability to sell certain assets, and reduced liquidity may have a negative impact on the price of assets. 

    The fund holds a limited number of investments in a single sector. If a particular holding or the infrastructure sector generally falls in value, this can have a greater impact on the fund’s value than if it had more holdings or it was invested in a more diverse range of sectors. 

    Infrastructure companies may be subject to factors which may adversely affect their business or operations, including high interest costs in connection with capital construction programmes and high leverage. 

    Please note that this is only a brief overview of the risks involved with investing in the VT Downing Listed Infrastructure Income Fund. Please read full details of all the risks here before investing.

  • What are the charges?

    These charges cover the management and administration costs of running the fund. These charges reduce the potential growth of your investment. 

    Initial charge: 0% 

    Ongoing charges: 0.40% p.a* based on the value of your investment. 

    Performance fee: N/A 

    No exit charge.

    *Downing has undertaken to absorb any costs that would otherwise cause the Class A shares to have on-going charges in excess of 0.40%.

  • Who’s the team behind the VT Downing Listed Infrastructure Income Fund?

    The fund is run by Josh McCathie. Josh joined Downing in October 2018 and is also the manager of the VT Downing Small & Mid-Cap Income Fund.

    Josh is supported by the wider Downing Fund Managers team, which was established in 2010 by fund manager Judith MacKenzie. Judith heads up the 15-strong team who have many years’ experience across both private and public equity markets.

    Downing Fund Managers is a boutique asset management business, drawing on Downing LLP’s 30-year track record in venture capital.

Essential reading

It's important that you read the information below, before deciding to invest.
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Factsheet - May 2022
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Downing Fund Managers Guide
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Josh McCathie profile

How to invest

If you are an investor and you would like to invest directly in the VT Downing Listed Infrastructure Income Fund, you can view and download the application form or click here to be taken to the Valu-Trac platform, where you can invest without paying a platform fee.

Prospectus
Key Investor Information (Class A)
Key Investor Information (Class B)

Current available platforms:

7IMEmbark PlatformPraemium
AegonEmbark PlatformQuilter
AJ BellFidelity FundsNetworkRaymond James
AllfundsHargreaves LansdownStandard Life Wrap
AvivaInteractive InvestorTransact
Embark AdvanceNucleus

We are currently working with other platforms so please let us know if yours is not listed above. 

Contact Downing

If you wish to receive factsheets for VT Downing Listed Infrastructure Income Fund via email, please click here.

If you are a financial adviser, or discretionary fund manager please call us on 020 7630 3319 or email us at sales@downing.co.uk.

If you are a private investor you can speak to our investor relationship team on 020 3828 0975 or email downingfundmanagers@downing.co.uk.