Guinness introduces a worldwide investment fund focused on tangible assets
## Guinness Global Investors Launches Global Real Assets Fund Amidst Rising Interest in Real Estate and Infrastructure
In a move that aligns with the growing trend of investors seeking safe havens and income-driven strategies, Guinness Global Investors has recently launched its Global Real Assets Fund. The strategy, managed by Mark Brennan, draws on Guinness' equity investment philosophy and builds on the firm's experience in the energy and infrastructure space.
The Global Real Assets Fund invests in asset-owning businesses across utilities, transport, communications, digital infrastructure, data centres, and healthcare. The focus is on high-quality real asset-owning companies, and the strategy aims to provide stable and growing income, as well as resilient earnings growth.
According to Mark Brennan, stabilizing macroeconomic conditions are reviving interest in asset-heavy models. He describes the asset class as "set up for a long-term renaissance." Edward Guinness, CEO of Guinness Global Investors, echoes this sentiment, emphasizing the importance of identifying high-quality companies and an analytical focus on sustainable free cash flows, which is emphasized over traditional yield metrics.
The fund targets listed infrastructure and real estate companies worldwide. Its approach is benchmark-agnostic and quality-led, offering a differentiated exposure with built-in inflation hedging and lower correlation to broader markets. This strategy provides investors with a unique opportunity to access a significant and growing asset class.
In the current market environment, investors are increasingly focusing on real assets as a strategic component of their investment portfolios. With elevated interest rates and economic uncertainty, investors are seeking safe havens. High-quality real estate, particularly core and income-producing properties, is benefiting from this trend as it offers stable returns and lower volatility compared to other asset classes.
Given the persistence of higher interest rates, income-driven investment strategies in real estate are gaining traction. Investors are looking for assets with limited leasing risk and strong long-term rental growth potential, especially in sub-markets with supply-demand imbalances. The current market conditions also present opportunities for value-add strategies in real estate. With attractive valuations and rising ESG requirements, investors are leveraging asset repositioning to meet changing occupier demands.
In addition to real estate, other real assets like infrastructure and private debt are also seeing increased interest. Liquidity pressures in private markets are driving demand for secondaries, offering opportunities for investors to acquire assets at attractive valuations.
Research indicates that investors plan to increase their allocation to real assets. The Global Real Assets Fund, with its proven investment process, could provide a strategic solution for those seeking to capitalize on these trends. Mark Brennan expresses delight about bringing the strategy to the market with Guinness Global Investors. The Irish-domiciled fund offers investors a diversified exposure to real assets while managing liquidity risks effectively.
Investors are increasingly turning to real assets, such as infrastructure and real estate, for their investment portfolios, considering them as strategic components that offer relatively stable returns and lower volatility. In line with this trend, Guinness Global Investors' newly launched Global Real Assets Fund focuses on investing in high-quality real asset-owning companies, specifically in utilities, transport, communications, digital infrastructure, data centres, healthcare, listed infrastructure, and real estate worldwide, with an aim to provide stable and growing income, as well as resilient earnings growth.
