Infrastructure

The EDF Group, a leader in low carbon energy, and Amundi, the European leader in asset management, are pleased to announce their partnership for the creation of a joint asset management company.

ETF Securities, one of the world’s leading, independent providers of exchange traded products (ETPs) has recently launched ETFS US Energy Infrastructure MLP GO UCITS ETF on the London Stock Exchange and Deutsche Boerse (Xetra).

Among infrastructure assets, energy infrastructure assets such as pipelines, storage facilities or processing plants, are experiencing a rapid growth, especially in the USA. Master Limited Partnerships (MLPs) have played a key role in facilitating investment in US energy infrastructure.

Even if infrastructure investments shares some of the characteristics with fixed income (long term predictable yield), real estate (investing in physical assets) and private equity (leverage is used), its popularity is increasing among investors.

In terms of performance, the fund objective is to provide an IRR (internal rate of return) between 8% and 10% with a 8 years investment horizon, taking into account a recurring cash revenue given an 5% annual coupon target.