Spiders get into infrastructure

Spiders get into infrastructure

State Street Global Advisors, the asset management arm of State Street Corporation, has launched an exchange-traded fund focusing on infrastructure.

Alexis Marinof, head of SPDR ETFs, Europe, Middle East and Africa, said: “Infrastructure investment has low correlation with traditional assets, provides access to long-duration and inflation-linked assets and is less sensitive to business cycles.”

Key features:

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• The SPDR Morningstar Multi-Asset Global Infrastructure Ucits ETF launched on the Deutsche Börse Xetra and tracks the Morningstar Global Multi-Asset Infrastructure IndexSM.

• The fund combines exposure to infrastructure equities and bonds.

• Minimum investment: one share on the exchange.

• Total Expense Ratio: 0.4 per cent.

IFA verdict

Chris Barker, chartered financial planner for Kent-based Apollo Pension & Investment Advisers, said: “There is a natural tendency to focus on something new such as infrastructure in investment.

“This fund should be well-diversified geographically because it is global but sector-wise, it is extremely tight. So there is a paradox.”