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.
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:
- Begins by screening the London listed investment trust universe for the infrastructure and renewable energy sectors.
- We then classify these trusts by market-cap and exclude any holding that is less than £100 million.
- 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.
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None of the information provided is investment or tax advice.
You should always read the associated risks before deciding whether to invest. These can be found on the product pages as well as in our risks overview.
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