The benefits of infrastructure funds are pretty clear, they are far less correlated to the wider equities market and can also offer an attractive income stream over medium to long term. Fundeye  examined one such fund here.

Nordea Asset Management, a firm that has launched a few funds this year, has recently launched Nordea 1 – Global Listed Infrastructure Fund.

It is managed by CBRE Clarion Securities and according to the firm “taps into the rising demand for new and existing infrastructure, which requires on-going investment to upgrade and replace”.

Nordea views infrastructure as a “solid late-cycle alternative”. As is fairly well known, the asset class is defensive in nature and provides a decent growth potential underpinned by inflation linked revenues from assets such as toll roads and is further boosted by dividend income.

“Cash flows and dividends benefit from contractually driven, inflation-linked revenue growth, which may provide a long-term hedge against inflation and rising interest rates,” said Jeremy Anagnos of CBRE Clarion Securities, manager of the infrastructure fund.