Schroders expands its suite of UK-based sustainable thematic strategies with the Digital Infrastructure Fund
test Schroders expands its suite of UK-based sustainable thematic strategies with the Digital Infrastructure Fund
Schroders is today expanding its Global Transformation Range of thematic funds with the Digital Infrastructure Fund, a UK unit trust investing in companies facilitating a sustainable transition to a digital economy.
With Environmental, Social, and Governance (ESG) factors at the core of the investment process, the Schroder Digital Infrastructure Fund aims to deliver long-term capital growth by investing in companies which own mission critical and sustainable infrastructure for the growing digital economy.
It will be managed by Hugo Machin and Tom Walker who have over a decade of experience investing in digital infrastructure, a long-standing component of Schroders’ flagship Global Cities strategy.
Drawing on the data-driven methodology employed by Schroder Global Cities, the fund managers will apply a distinctive active investment approach focused on identifying digital infrastructure companies backed by physical assets.
This will be achieved by focusing on areas that form the backbone of connectivity for all digital platforms such as; fibre-optic cables, macro towers, data centres and small cells. It is expected that these asset types will form the majority of the Fund’s investments but other digital infrastructure assets will be included in analysis for potential inclusion.
Hugo Machin and Tom Walker, Co-Fund Managers, Schroder Digital Infrastructure Fund, commented:
“Digital infrastructure has a key role to play in promoting economic competitiveness, social inclusion and reducing energy consumption. We believe digital infrastructure is the fourth utility such is its importance to society, and for many businesses and governments it is ‘mission critical. In our view, we are in the early stages of the digital transformation, this provides a compelling growth opportunity for companies that are at forefront of this transformation and the true value of digital infrastructure is not fully appreciated by the market.
“By utilising Schroders’ extensive research and ESG capabilities, our aim is to select companies that practice good governance and have demonstrated a commitment to sustainability, which meet the fund’s sustainability criteria. We are confident that, combined with our focus on companies backed by physical assets, we can deliver strong long-term capital growth for our investors.”
The Schroder Digital Infrastructure Fund is the latest addition to the Schroders Global Transformation Range of thematic strategies. The launch of this unit trust further reflects the ongoing expansion of Schroders’ UK-based sustainable funds and investment trusts. Last year, Schroders added Global Energy Transition and Global Sustainable Growth to its UK range and in 2020, launched the Schroder BSC Social Impact Trust plc.
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