The investment objective of the infrastructure fund is to achieve a continuous and attractive return, primarily by means of ongoing yields generated by investing in a portfolio of infrastructure debt investments. Capital retention is a key premise here. The investment policy provides for investments in the funding of the development and operation of infrastructure projects through loans or bonds. The projects can be in a range of different development phases, from "Greenfield" to "Brownfield". The funding can cover all fields of the infrastructure spectrum such as transport, utilities, energy, communication and social engagement.
The special fund offers institutional investors a broadly diversified investment with an optimised risk/return profile in the infrastructure financing asset class. The target volume is EUR 800 million. The planned duration is around 25 years. The average modified duration is 11-13 years, and the average target return is 2.85% p.a. before costs.
In addition, the returns and cash flows of the investment projects are plannable and highly suitable for covering long-term payment obligations. For this reason, the infrastructure debt asset class is for investors subject to the German Insurance Supervision Act (Versicherungsaufsichtsgesetz (VAG). They meet the reporting requirements of bank supervisory laws.
The MEAG Institutional Fund S.C.S. SICAV RAIF- MEAG Infrastructure Debt Fund II is aimed at institutional investors and was issued on the platform of MEAG Luxembourg S.à r.l.