INFRASTRUCTURE/PROPERTY (6 FUNDS)
Rising interest rates and higher government bond yields did plenty to erode confidence in trusts focused on real assets back in 2022, and it's fair to say that confidence is yet to return. Infrastructure and property trusts both continue to languish on big share price discounts to net asset value (NAV), by and large, with pressure in the sector also evidenced by a high level of merger and acquisition activity.
Having said that, sector consolidation and the start of interest rate cuts should mean better times ahead, suggesting investors may do well to take advantage of the big discounts and dividend yields available at the moment. We stick with last year's roster of funds, many of which are big and established names, but also add one infrastructure play that has been exciting a few of our panellists.