At a time when we all are looking for ways to beat inflation, social infrastructure funds can come into their own. Social infrastructure involves investment in solid assets such as schools, hospitals and prisons, and most contracts are backed by governments. Cash flows from these investments are high and consistent. And while the costs of the bigger projects are usually fixed, the revenues are inflation-linked, usually to the retail price index. This means that many funds of this type offer a way to cope with soaring inflation. But which one should you buy?
3i Infrastructure (LSE: 3IN), managed by Cressida Hogg, has just announced its annual results. It delivered impressive income generation. Meanwhile, retail price inflation of 5.3% over the year has added £7m to the fund's net asset value (NAV). "The fund's potential for significant capital protection and its yield of close to 5% is exceptionally attractive in an environment of low rates," says Investors Chronicle.
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3i Infrastructure Fundtop ten holdings
| Anglian Water | 23.8% |
| Eversholt Rail | 19.6% |
| Oystercatcher | 14.5% |
| Adani Power | 6.4% |
| Elgin | 4.9% |
| TDF | 4.5% |
| I2 Loan Notes | 3.9% |
| NGW Arqiva | 3.9% |
| Krishnapatnam Port | 3.8% |
| Octagon | 3.8% |
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Should the income protection age cap be lifted?You can only get income protection cover if you are below age 59. With people now working for longer, should the limit be raised?
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UK interest rate cut all but ruled outRates are expected to remain at 4.25% when the Bank of England announces its decision tomorrow
