Shelter income from inflation

Enthusiasm for the renewable-energy sector has cast a shadow over the original infrastructure funds with a much broader remit. These diversified funds continue to prosper, delivering rising dividends and asset values from investment in cyclical businesses and facilities. These have little, if any, revenue risk, strong cash flows, inflation protection and, hopefully, the potential to add modestly to returns through active management.

The original three – HICL Infrastructure (LSE: HICL), 3i Infrastructure (LSE: 3IN) and International Public Partnerships (LSE: INPP) – were floated in 2006-2007. They were joined by GCP Infrastructure Investments (LSE: GCP) in 2010, BBGI Global Infrastructure (LSE: BBGI) in 2011 and Pantheon Infrastructure (LSE: PINT) last year. The first four have grown significantly through share issues to finance acquisitions and now have assets of £3bn, £2.5bn,£2.8bn and £1bn, while the fifth is now 64% invested and has assets of £400m.

Reflecting its higher historical returns (which come with higher economic risk), 3IN yields 3% and trades on a