(Boursier.com) — By launching “Swiss Life Funds (LUX) Privado Infrastructure SA, SICAV-ELTIF”, Swiss Life Asset Managers offers private and institutional investors from certain countries of the European Union and Norway, as well as to qualified investors in Switzerland, the opportunity to invest in private infrastructure, an asset class traditionally reserved for institutional investors.
“Swiss Life Funds (LUX) Privado Infrastructure SA, SICAV-ELTIF” (Privado Infrastructure) offers eligible investors1 exclusive access to a portfolio of investments in private infrastructure.
This fund is aimed at private and institutional investors from certain countries of the European Union and Norway, as well as qualified investors in Switzerland in accordance with Article 10, paragraphs 3 and 3ter of the Federal Act on Collective Investments of capital in Switzerland (LPCC, “eligible investors”).
The fund’s strategy is to establish a diversified infrastructure portfolio across OECD countries, focusing on consistent returns in sectors such as renewable energy, energy and utilities, communications, transport and social infrastructure. From the inception of the fund, investors gain access to an exclusive and diversified portfolio of more than 40 private infrastructure companies such as wind and solar farms, hydroelectric plants, recycling companies, data centers, fiber networks , district heating networks, railway carriages, private hospitals, and many more.
Eligible investors can invest in Privado Infrastructure through their bank or through financial intermediaries. They access a diversified and scalable portfolio that provides essential services to society,
investing alongside the Swiss Life Group, the largest life insurance company in Switzerland and one of Europe’s leading providers of financial, pension and life insurance services.
Privado Infrastructure is an actively managed fund, without reference to an index. The initial subscription period will end on April 30, 2024. Thereafter, eligible investors will be able to make monthly subscriptions and, subject to certain conditions, quarterly redemptions. Due to the recommended investment period of at least seven years, this fund is complementary to existing investments in other asset classes such as money market, bonds, shares or even real estate.
Private infrastructure remains an attractive asset class
Investing in infrastructure helps diversify a portfolio and improve risk-adjusted returns. Additionally, infrastructure offers growth potential as well as stable dividends. The projects financed are infrastructure essential to the economy and society, such as transport networks, hospitals, schools, water treatment and water supply plants, power plants or telecommunications facilities modern.
They respond to sustainable needs, which are not destined to disappear in the near future, and contribute to improving the living and working environment, thus stimulating economic efficiency. Furthermore, they contribute to the growth and development of communities and businesses, while creating jobs.
Financing needs on a global scale
Urgent infrastructure needs are widely recognized globally: improving existing infrastructure or building new infrastructure will be essential to the future availability of clean water, housing and commercial space, lighting systems and sanitation, as well as other vital resources. Thus, the total need for investment in infrastructure across the world is estimated at $3.9 trillion per year.
Economic development, urbanization and population growth make the need for new and upgraded infrastructure even more urgent.
Such investments are necessary: infrastructure is essential not only to meet basic human needs, but also to support economic growth and preserve quality of life. The challenge is on the one hand to find funds for the substantial investments needed and on the other hand to direct them towards the right infrastructure projects. Swiss Life Asset Managers believes that it is also key to provide the required infrastructure at an affordable cost, in a socially equitable and environmentally sustainable manner, all in a context where the challenges linked to climate change continue to evolve.
Characteristics of European long-term investment funds (ELTIF)
An ELTIF (European Long-Term Investment Funds) allows eligible investors to access private markets or real assets, such as infrastructure. The objective of the ELTIF Regulation is to encourage long-term investments in the economy
real estate, namely listed and unlisted private companies, infrastructure projects and real estate investments.
ELTIFs can provide eligible yield-seeking investors with access to a regulated instrument specifically designed for long-term, illiquid and real assets. They can represent a secure solution for investors interested in investing in private markets.
Swiss Life Asset Managers has specialized since 2011 in direct investments in infrastructure assets, and offers its clients an attractive and diversified portfolio. The team of experts, made up of 65 professionals, manages 10 billion euros of assets and has made 75 direct investments in all major infrastructure sectors: renewable energy and energy, communications and transport, public services and social infrastructure. With each direct investment, the team strives to drive change by serving on the board of directors and exercising active participation, with the goal of creating value for our customers.
NOTE: Like all investments, investing in this product may also involve risks. Interested eligible investors should review the Privado Infrastructure prospectus to learn more about the risks of investing in this fund.