Infrastructure & Capital Preferred Income UCITS ETF

Issuer: HANetf

Asset Class: Fixed Income

TER: 99bps

Trading Currency: GBX

Pays Income: False

Listing Date: 03 Oct 2025

Ticker: PFFP

ISIN: IE0008LRGGP4

This investment vehicle offers actively managed exposure to the preferred securities market, with a specific focus on North American infrastructure companies. The primary objective is to generate a high level of current income, with a secondary goal of achieving capital appreciation. The portfolio is concentrated in sectors that form the backbone of the economy, including midstream energy, utilities, renewables, and digital communications infrastructure. By investing in these essential asset classes, the strategy aims to tap into stable, long-term, and predictable cash flows that are often insulated from broader economic cycles. This focus on critical infrastructure provides a defensive quality while pursuing attractive income opportunities.

The strategy centers on preferred securities, which are hybrid instruments combining features of both stocks and bonds. They typically offer fixed, high-yield dividend payments, similar to bond coupons, and hold a senior position to common stock in a company's capital structure, adding a layer of security. This can be particularly beneficial in the infrastructure space, where capital-intensive projects are supported by long-duration assets. The combination of high income potential from preferreds and the cash-flow resilience of infrastructure assets creates a compelling proposition for those seeking yield. The active management approach allows for dynamic allocation and security selection to optimize for yield, credit quality, and total return potential.

This fund is designed for income-oriented investors searching for yields that may surpass those of traditional fixed-income instruments like government or investment-grade corporate bonds. It can serve as a core income-generating component within a diversified portfolio or as a satellite allocation to enhance overall yield. The focus on essential infrastructure offers a thematic tilt towards assets that are fundamental to modern society's functioning, potentially providing portfolio resilience. Investors should be comfortable with the specific risks associated with preferred securities, including interest rate sensitivity and credit risk, but may find the potential for consistent monthly distributions and exposure to a vital economic sector to be an attractive trade-off.