Raiffeisen-NewInfrastructure-ESG-Aktien
Some time ago, the fund concept of our Raiffeisen-NewInfrastructure-ESG-Aktienwas expanded:
on the one hand, to include sustainable and responsible investing, and
on the other hand, to give the "digital infrastructure" theme its own space within the fund. In recent years, these equity investments have made a positive contribution to the fund's performance. Of course, this is no guarantee that they will continue to do so in the future.
It is rather uncommon for infrastructure funds to significantly consider Emerging Market equities, which are a key component of the Raiffeisen-NewInfrastructure-ESG-Aktien. The reason is obvious: these countries generally have the greatest need for infrastructure development. Nevertheless, most of these Emerging Market investments have so far fallen short of expectations, although some individual positions have been among our most successful in recent years. The investment specialists at Raiffeisen KAG still believe that these positions will perform well in the long term. Naturally, there is no guarantee of this, and of course, the fund management continuously reviews all investments. This is, by the way, an important element that distinguishes actively managed funds from passive ones (the latter essentially operate on "autopilot").
Sectors in the infrastructure fund
For Raiffeisen-NewInfrastructure-ESG-Aktien, the main issues currently playing an important role are those that concern
mobility,
digitalisation,
energy turnaround,
demographic change, and
urbanisation.
Why does the fund invest in "digital infrastructure"?
Some people may wonder what software companies or microchip manufacturers have to do with an infrastructure fund. It's easy to explain: They enable the expansion of digital infrastructure, which is now no less important than bridges, roads and railways. Government funding and investment programmes now also focus on digital infrastructure in addition to sustainable infrastructure investments.
Digital infrastructure follows a self-reinforcing growth process: The more data there is, the more applications are developed to utilise it profitably. The more such data and applications there are, the more digital infrastructure (e.g. bandwidth) is needed. The more bandwidth there is, the more data and applications are generated or developed, etc. With the current breakthroughs in the field of artificial intelligence, this demand will increase even further.
Tailwind for the infrastructure sector
Infrastructure forms the backbone of our modern society and has long been an integral part of our everyday lives. This results in a de facto unquenchable demand for the expansion, maintenance, and modernisation of infrastructure. This means a solid fundamental tailwind for the sector and continued strong growth in some areas. In addition, the infrastructure sector will enjoy a tailwind from politicians for the foreseeable future - just think of the recent easing of the debt brake in Germany.
Equity selection in the infrastructure fund
Another equally important distinguishing feature is the active stock selection. In Raiffeisen-NewInfrastructure-ESG-Aktien, the focus is on the quality of the companies, their fundamental valuation, and their likely value appreciation potential. As a result, the portfolio includes not only widely known names that almost everyone is aware of, but also rather "boring" yet sometimes very solid and profitable companies, such as those in the asphalt and cement sectors. These companies may not have explosive growth rates, but they do have a solid business with relatively limited competitive pressure.
Nevertheless, investments in infrastructure equities are not a sure-fire success, just like nothing on the stock markets. Changing (geo-)political conditions, rapid technological change and, last but not least, global competition can give rise to new stock market stars but can also turn current winners and market leaders into losers. The opportunities are therefore accompanied by risks and uncertainties.
Good stock selection, sensible diversification of investments and constant monitoring of the market are therefore essential. This makes the topic ideal for an actively managed equity fund.
>> To the fund details and purchase options:
Raiffeisen-NewInfrastructure-ESG-Aktien
Sustainability in our infrastructure fund
Sustainability does not happen overnight. It is important to understand that responsible business practices are a process, not something that can be achieved in an instant. Raiffeisen Capital Management therefore places a strong emphasis on the topic of transformation. Raiffeisen KAG aims to influence companies and support their transition to more sustainable and responsible business practices through its investments and intensive engagement process. From Raiffeisen KAG's perspective, such an approach, focusing on positive change, is far more sensible than rigidly excluding everything that is not yet "perfectly sustainable." This would be an unrealistic approach and would benefit neither the environment and climate nor the investors. Neither "greenwashing" nor token improvements are rewarded. And in certain areas, such as controversial weapons or coal mining, there are indeed strict exclusions.
Multifaceted ESG concept
The ESG investment concept of Raiffeisen-NewInfrastructure-ESG-Aktien is therefore based on a mix of
negative criteria (exclusion of certain sectors and companies such as coal or companies that massively violate human and labour rights),
ESG minimum ratings for the companies in the fund, and
active influence and communication with the companies in the fund.
Raiffeisen KAG can draw on its many years of expertise in sustainable investing and active dialogue with companies. The latter in particular is active "relationship work" for more responsible business and investment.
How do sustainability and infrastructure fit together?
Infrastructure is not only indispensable for our daily lives, but it is also the key to a more sustainable, less climate-damaging, environmentally friendly, and healthier world. Nevertheless, infrastructure and sustainability are not automatically the perfect partners. On the one hand, a significant part of the existing infrastructure is by no means sustainable, for example motorways with petrol filling stations or oil pipelines. On the other hand, building a more sustainable infrastructure is hardly possible for the time being without companies or industries that are not exactly associated with sustainability, such as oil and coal suppliers, copper and iron ore mines. And even systems for sustainable energy generation or electric carsare still far from being as resource-efficient and environmentally friendly as desirable in terms of production and disposal.
Future trends and investment strategies
How Raiffeisen KAG analyses the markets
"There is no way without a goal." Seneca already knew this in ancient Rome. It is well known that the future and future expectations are always traded on the equity markets. This applies not only to company profits and any dividends, but also to the major themes and defining investment trends. It is therefore not only wise, but essential, to deal with them in advance and think through the likely effects.
Raiffeisen KAG therefore defined a range of Future Transofrmation Topics (Zukunfts-Themen) some time ago that will most likely characterise the decades to come. These are regularly discussed in working groups by fund managers and analysts from a wide range of subject areas (e.g. healthcare, infrastructure or technology), regions (Europe, Asia, emerging markets) and asset classes (bonds, equities, commodities). This makes it possible to incorporate many different valuable perspectives and current developments and to create an excellent basis for equity selection, market assessments and sustainability judgements.
By the way: CAPinside Austria analysed the performance of more than 200 global infrastructure funds that have been on the market for at least five years. The Raiffeisen-NewInfrastructure-ESG-Aktien took first place in the performance comparison.
Source: CapInside, 04/2025
Raiffeisen-NewInfrastructure-ESG-Aktien exhibits elevated volatility, meaning that unit prices can move significantly higher or lower in short periods of time, and it is not possible to rule out loss of capital.