Irish Life Infrastructure Equities

The Infrastructure Equities Fund invests in equities that aim to track the Dow Jones Brookfield Global Infrastructure Index. It focuses on pure-play infrastructure companies from around the world, meaning businesses that earn most of their cash flow from infrastructure-related activities. To be included in the index, a company must derive at least 70% of its cash flows from infrastructure lines of business.

The Infrastructure Equities Fund is managed passively and seeks to perform in line with the Dow Jones Brookfield Global Infrastructure Index. In practice, that means it generally aims to hold the companies in the index rather than trying to outperform them. The underlying investment manager is Irish Life Investment Managers.

The Infrastructure Equities Fund is concentrated in infrastructure-related sectors, especially Utilities, Industrials and Energy. That gives it exposure to companies linked to essential services and assets such as power, transport and energy networks. Because it is focused on one theme, returns can be more sensitive to sector-specific developments than a broadly diversified equity fund.

The Infrastructure Equities Fund invests globally and can hold companies domiciled in markets including the US, Australia, Spain, Canada, Mexico, France and other countries. This broad geographic spread can help diversify the portfolio, but it also means investors are exposed to differences in local economic and political conditions. In plain terms, that means events in one country can affect part of the fund even if other regions are doing better.

The Infrastructure Equities Fund may suit investors who want focused exposure to global listed infrastructure companies and are comfortable with equity market movements. It is designed to follow a specific infrastructure index rather than to take active bets. Investors should also be aware that infrastructure shares can still fall in value if market conditions, interest rates or sector sentiment change.