- Two digital infrastructure trusts have grown at an astonishing rate since launching in early 2021
- We examine their appeal – and the possible downsides
One of the most striking investment trust developments of last year saw the first two trusts dedicated to the infrastructure of the digital economy raise enormous sums. Cordiant Digital Infrastructure (CORD) and Digital 9 infrastructure (DGI9), which both listed in the first quarter of 2021, already have combined assets of more than £1.5bn.
Both trusts have kicked off the year by announcing further share placings. Cordiant, the smaller of the two, has made a commitment to buy two assets – a multi-asset digital infrastructure business based in Warsaw and a data centre in New York. Digital 9, meanwhile, is hoping to raise £200m and has agreed to buy a wireless network operator in Ireland. While the issues are not open to private investors, they have led to a narrowing of the trusts' premia to net asset value (NAV). Given the promising start and the attractive returns both trusts are targeting, is it time to consider investing?