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Sponsored: Strategic Capital Fund Management Explains The Widespread Appeal of Digital Infrastructure

Brandon Hunt, Portfolio Manager of Strategic Capital Fund Management, discusses the resiliency digital infrastructure has displayed throughout COVID 19, the utility-like characteristics of the assets and why savvy investors are gravitating to the space.

Video Transcript

Brandon Hunt   00:07

Hi, my name is Brandon Hunt with Strategic Capital Fund Management, and today we want to give you a little bit of background on what’s going on in the digital infrastructure market. And you may be familiar with traditional physical infrastructure like roads and bridges airports railways etcetera that carry physical traffic digital infrastructure really refers to you know what carries stores and processes are are data or digital traffic. And so, in digital infrastructure that could include things like data Centers for example which might be cloud computing or colocation facilities Internet gateway properties or even particularly with the the onset of 5G technology is what we call edge computing properties.

On the telecommunications and wireless front is also considered a digital infrastructure asset class. So that would include your cell phone towers fiber optic networks small cell distributed antenna systems. And so really at the core of it these are critical assets that support our connectivity. And I think as we’ve evidenced this year you know it’s become a very important essential part of our modern economic fabric right and it’s really designed to support the way that we live work and play. What’s really interesting about the digital infrastructure market particularly now is that it’s a very resilient asset class.  So, it’s an inelastic business, it’s often considered by many as a fourth major utility. So very utility ask type of risk return profile, generally performing well through all different types of macroeconomic scenarios.

As we’ve seen solid performance not only during past recessions and other types of scenarios but also you know for this year during the novel coronavirus and COVID-19 and the impact that’s had on the global economies capital markets and various asset classes. You know digital infrastructure assets have broadly performed very well, right because these just simply don’t have any foot traffic demand you know driving returns for the business. So, I think the performance for investors some of the key benefits is that it doesn’t correlate with the broader economy. Right, there’s not really correlation proven between what’s happening with GDP growth or slow down to you know leasing activity in the data center and the cell tower business for example. So, I think you know long-term the growth and adoption of technologies like cloud computing, the Internet of Things 5G or the 5th generation of mobile broadband technologies. I think there’s really tremendous room for growth long term.

At Strategic Capital we’re excited about the opportunities in the digital infrastructure market. We’ve really developed and built a, an asset management platform with a high conviction strategy for investing in the sector. On one side we have a data center platform experience portfolio management team as well as a telecommunications and wireless infrastructure segment. So collectively our asset management acquisition disposition and property management expertise collectively is over 160 billion as well as over 150 years of collective experience between the executives. So, we’re excited about the opportunities in the space and we’re also looking forward to help educate those that are interested in learning more about investing and about the opportunities in the digital infrastructure market.

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