The Share Centre’s investment manager Sheridan Adams, reported this was reflected in the top five most sold funds in January this year.
“It’s not surprising that funds associated with the infrastructure sector feature heavily in the top sold list. The collapsed government contractor Carillion, who failed to find a rescue package and subsequently fell into liquidation grabbed headlines in January,” he confirms.
“The news was dominated by the story, putting a renewed focus on the support service sector and questions were then asked about how these companies operate.”
Recent research by Foresight Group, conducted among 73 financial advisers in the UK, finds 69 per cent of intermediaries are concerned about the risks of what it calls “fake infrastructure”, although the survey also reveals that advisers predict allocations to infrastructure will reach 7 per cent in the next five years.
Jamie Richard, partner at Foresight Group, explains: “Advisers are becoming increasingly familiar with the benefits that access to listed infrastructure can bring to client portfolios and predict that the asset class will continue to grow over the coming years.
“What’s emerged from the collapse of Carillion is a much clearer understanding of listed infrastructure and listed ‘quasi’ infrastructure, comprising products that have been incorrectly badged.”
He adds: “We expect this will encourage a flight to quality as advisers recommend opportunities that provide access to the consistent, inflation-linked underlying cash flows that make the asset class so attractive, particularly in times of uncertainty when markets are rocked by volatility.”
eleanor.duncan@ft.com
