Thursday, 4 April 2013

INFR.L Purchased


Today i purchased INFR.L at around GBP15.19 per share.

This is a UK listed ETF tracking an index of global infrastructure companies. These are mainly utilities with a heavy weighting to the US, UK & Canadian energy providers, with a current dividend yield of around 3.4%

I've been meaning to make this purchase for a while as it fits a number of gaps in my portfolio both in terms of industry & geography, and the nature of the businesses tend to deliver large stable dividends.  One of the components, National Grid (UK energy infrastructure), has recently announced its intention to grow its dividends in line with the retail price index - this is quite a bold commitment to dividend growth for the foreseeable future.

The only thing that was holding me back has been its strong recent performance, gaining around 10% during this rally.  I had been watching it for a while & hoping for a pull back, but given its natural fit with my portfolio i decided to buy now and will try not to concern myself with short term price movements.  Whilst i don't think this ETF is too expensive by historic standards (seems to have lagged the major indices since the crisis), it will hopefully(!) provide steady & stable returns.

This was one of my larger purchases and is intended to be a core long term holding.

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