Billions are pouring into Schroders' infrastructure investment fund.
The Schroder Euro Enhanced Infrastructure Debt Fund II (Julie II) has achieved a significant milestone, reaching €1 billion in total investments. This development highlights the strong investor confidence in the fund's ability to identify excellent investment opportunities and generate robust returns.
Launched last year, the fund has been attracting a high proportion of inflows from German investors, with approximately 30% of total inflows coming from this market. This trend suggests a strong interest in the fund among German investors and underscores the demand for alternative investment solutions in the German market.
Peter Begler, Head of Alternative Investments at Schroders Capital in Frankfurt am Main, confirmed this observation, stating that the high proportion of inflows from German investors into Julie II indicates significant demand for alternative investment solutions in the German market. Schroders Capital is very pleased about this development.
The Schroder Euro Enhanced Infrastructure Debt Fund II is driven by key investment trends focusing on sustainable infrastructure development, resilient debt instruments, and enhanced credit quality. The fund's investments are made in European infrastructure companies and emphasize risk/reward filtering with a strong sustainability and ESG (Environmental, Social, and Governance) focus.
The fund's sector focus includes investing across the infrastructure debt value chain in Europe, targeting sectors related to physical and social infrastructure such as transport, energy, healthcare, and schools. These sectors typically involve essential service infrastructure requiring stable cash flows and are often supported by public or quasi-public counterparties, offering defensive qualities.
Chantale Pelletier, Head of Infrastructure at Schroders Capital, has stated that investor interest in Julie II has been strong since its launch last year. The management team of Julie II continues to ensure they are well-positioned to support investors and continues to attract a high proportion of inflows from German investors.
The funds invested by Julie II have been used in bonds issued by European infrastructure companies since the third quarter of 2020. This positioning seeks to benefit from Europe's commitment to upgrading critical infrastructure underpinned by sustainability standards and regulatory frameworks supportive of impact investment.
In summary, the Schroder Euro Enhanced Infrastructure Debt Fund II is a testament to the investor confidence in the fund's ability to deliver sustainable returns in the European infrastructure sector. The high proportion of inflows from German investors underscores the demand for alternative investment solutions in the German market and the fund's successful strategy in attracting and managing investments.
The achievement of €1 billion in total investments by the Schroder Euro Enhanced Infrastructure Debt Fund II signifies a growing interest in infrastructure finance among investors, and this fund's strong focus on sustainable investment opportunities and defensive sectors like transport, energy, healthcare, and schools makes it an attractive choice for business investments. The increased inflows from German investors into the fund demonstrate the demand for alternative investment solutions, particularly in the German market, within the realm of finance and investing.
