State Street Global Advisors (SSGA) has launched what it claims is the world’s first infrastructure exchange traded fund (ETF) offering exposure to both equities and bonds.
The asset manager’s SPDR Morningstar Multi-Asset Global Infrastructure UCITS ETF will be listed on the Deutsch Börse Xetra today and the London Stock Exchange from tomorrow, tracking the Morningstar Global Multi-Asset Infrastructure index.
SSGA said the launch follows its own research of 120 European investors which revealed around one-third (33%) of institutional investors plan to increase their investment in infrastructure as soon as the second quarter of this year.
The survey found 20% of institutional investors who already invest in, or plan to invest in infrastructure are considering using mutual funds or ETFs.
Elsewhere, 20% of institutional investors quoted illiquidity as a problem and 18% saw the size of investment required as a barrier to entry.
Head of SPDR ETFs EMEA, Alexis Marinof, said: “Infrastructure investment has a number of key benefits: it has low correlation with traditional assets, provides access to long-duration and inflation linked assets and is less sensitive to business cycles.
“However, many investors don’t have the scale to invest in unlisted infrastructure or directly into debt securities, making it difficult for smaller investors to get exposure. Our fund aims to combat this, by offering a regulated, open-ended vehicle through which to access the asset class. The ETF also helps larger investors who have an allocation to direct infrastructure, by offering a temporary home for committed, but uncalled capital.”
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