128. Why infrastructure investing is poised for great things

Alex Araujo, manager of M&G Global Listed Infrastructure fund, tells us about the different types of company that he invests in. He discusses which he thinks are the most exciting opportunities today, and gives examples of holdings and why he likes them, including China Gas Holdings and Home REIT. He also discusses the income-producing opportunities in the sector and tells us why he had to sell a business due to sustainability issues - and how this demonstrates the importance of independent scrutiny when it comes to ESG investing.
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M&G Global Listed Infrastructure fund looks for a balance of growth and income from three key areas of the sector: economic, social and ‘evolving’ infrastructure. This means investments can include anything from utilities and toll roads to health, education and civil buildings, as well as mobile towers, data centres, payment companies and royalties. It has been run since launch by manager Alex Araujo.

Read more about M&G Global Listed Infrastructure

What’s covered in this podcast:

  • What types of company are classed as economic infrastructure, citing China Gas Holdings and its decarbonisation initiative as an example [0:32]
  • What types of company are classed as social infrastructure and why they are becoming critical [2:10]
  • What types of company are classed as evolving infrastructure [3:14]
  • Which area the manager thinks is most exciting in terms of investment opportunities [5:21]
  • Why the manager had to sell a holding on sustainability grounds and why independent third party scrutiny is important in ESG investing [7:00]
  • Why the manager likes Home REIT – a trust providing accommodation for the homeless [10:20]
  • How the manager plans to grow the fund’s dividend [12:19]
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