Gravis Advisory plans to launch an income fund that invests in digital infrastructure essential to the ‘fourth industrial revolution’, aiming to generate an annual dividend yield of 3 per cent.
The VT Gravis Digital Infrastructure Income fund will invest in companies that own physical infrastructure assets vital to the digital economy, including data centres, telecom towers, fibre optic cable companies, logistics warehouses and the digitalisation of transportation.
William MacLeod, managing director of Gravis Advisory, a subsidiary of infrastructure & real estate investment specialist Gravis Capital Management, described digital infrastructure as “a vital but largely unrecognised sector of the global economy”. He added that it is growing “at an extraordinary pace”.
“We intend to invest in the companies that form not just the backbone, but the entire skeleton of our day-to-day business and home lives,” MacLeod said. “The infrastructure which supports the digital world has become absolutely critical to us all, ensuring we are able to keep operating smoothly and efficiently, wherever we are.”
VT Gravis Digital Infrastructure Income will be managed by Matthew Norris, Gravis’ director of real estate securities.
Like the three other funds in the firm’s range - VT Gravis UK Infrastructure Income, VT Gravis Clean Energy Income and VT Gravis UK Listed Property - it will aim for capital growth by investing in global listed securities including real estate investment trusts, equities and bonds.
Norris said: “The growth of the digital economy has moved rapidly in recent years and it now underpins huge swathes of our lives. What is taking place, largely out of the public eye, should be regarded as the fourth industrial revolution.
“It is almost impossible to function effectively, either in a private or business capacity, without access to the connected digital world, and the digitalisation of society is transforming the face of traditional sectors of the economy.
“To support the explosion in demand for connectivity, physical infrastructure assets are required, and behind the headlines a vast new infrastructure sector has been developing to support and sustain the new digital economy. The global pandemic has only hastened the transition to a digital economy, in some areas accelerating growth by five years versus expectations.”
VT Gravis Digital Infrastructure Income will have an annual management charge (AMC) of 0.80 per cent, with its ongoing charges capped at AMC.
It will launch with an offer period spanning 4 to 31 May, with the official launch date being 31 May.