Family offices’ love of tangible assets mean that most will be tempted to invest in Europe’s crumbling infrastructure, but there are warning signs regarding political risk and product quality.
Infrastructure is a new buzzword across Europe. A recently elected Labour government in the UK is doing its utmost to reignite a long-extinguished industrial flame, fuelled by a raft of new infrastructure investments.
These include Middle Eastern logistics giant, DP World, pumping £1bn ($1.3bn) into shipping berths and warehouses at the London Gateway port; Spanish utility Iberdrola injecting £10bn into offshore wind farms; and a £1.1bn Stanstead Airport investment, spanning terminal expansion and construction of a new solar farm.
While some wealthy families are keen to get involved in the boom, others are more hesitant, troubled by perceived political instability and lack of suitable investment vehicles.
“There are big problems in infrastructure, not just in the UK, but also in Germany and Italy,” says Chris Kaehelin, CEO of the Henley & Partners consultancy, which helps wealthy families relocate to different jurisdictions. “Bridges are also collapsing in the US, where roads and railroads require huge resources, as there is not enough ongoing investment.”
Advertisement
His fear is that because wealthy families are leaving the UK, due to a of lack of investment in infrastructure in transport and health services, a vicious circle is being created, because it is precisely these investors who are most likely to inject funds into construction efforts.
“A lot of people are thinking of leaving the UK, not just for non-dom reasons, but the general direction of the country is not feeling favourable for international wealthy families,” he says. “Wealthy businesses want to invest in the infrastructure around them. No governments should chase away wealthy people, as they are the ones who drive investments. When they leave, the investments leave too. They create jobs and bring in innovation.”
Water treatment
Most investment players say these investments have started, even though they may be moving without the much-needed momentum being hyped by European governments.
“Infrastructure is not at the level that it will have to be for how we operate our economies in the future,” says Nannette Hechler-Fayd’herbe, chief investment officer for Emea at the Lombard Odier Group in Geneva.
Advertisement
“If you think about it, some infrastructures in developed markets are very old indeed. Water treatment and distribution infrastructure in the UK in the City of London dates back nearly 100 years. That’s why we are looking at all types of infrastructure, where companies are participating in increased spending.”
This includes both direct investment in projects and buying into listed companies participating in the boom. Electric vehicles and charging networks which support them are of particular interest at Lombard Odier.
“Infrastructure in the UK remains a huge investment theme for asset managers and there is a significant number of opportunities for Infrastructure debt managers, echoed by institutions looking to invest in this asset class,” says Jean-Francis Dush, managing director of Edmond de Rothschild Asset Management in the UK and investment director of the group’s BRIDGE platform, investing in infrastructure projects linked with sustainable development and ESG principles.
“Large family offices are also interested and some debt products with double digit returns may attract their liquidity and bring additional funding to the UK’s infrastructure projects.”
Advertisement
He draws attention to investments including BRIDGE’s Yield Plus Growth strategy, which supports growth of projects in energy and digital transition spheres. “ESG is embedded in infrastructure,” says Mr Dush, whose funds are regulated under Article 8 of the March 2021 EU SFDR Directive.
“ESG is incorporated in our investment process from sourcing, structuring specific covenants, impact measurement of CO2 emissions avoided and alignment to the 2050 global warming reduction targets, plus reporting of each asset invested.”
“ESG is embedded in infrastructure,” says Jean-Francis Dush from Edmond de Rothschild Asset Management
Energy transition
The energy transition, according to Mr Dush, is happening across all infrastructure sectors, including renewables and sub sectors such as battery storage, hydrogen, transport and green mobility, digital infrastructure, and decarbonisation of utilities.
Investments in wind and solar power are among the most attractive for family offices. “This has become part of the core infrastructure play and there have been significant opportunities for almost three decades,” says Mr Dush, referring to the EU Fit for 55, which aims to decrease CO2 emissions by 55 per cent by 2030. “This has further accelerated the growth of renewable energy and is also creating the need for battery storage to manage the intermittent production and feed a constant flow to the grid and users,” he says.
Middle Eastern families in particular are interested in renewable energy and electric cars, although there is a desire to see vehicles manufactured more cheaply in Europe, to counteract current Chinese dominance of this market, says Sohail Jaffer, managing director of Genesis Consulting in Luxembourg, and former regional head of alternative investments at Citi.
Advertisement
“Renewable energy is a variation on the real estate theme, because it’s something you can touch and feel, which is infrastructure,” he says. “It’s not about intellectual or property rights. These guys like to be able to have tangible assets.”
While most wealthy investors are already overweight in their real estate allocations, they are generally willing to consider extra allocation to other so-called “real” assets, says Paul Whelan, director of UK wealth management for Swiss private bank Mirabaud.
“The richest investors like to see something tangible, adding a broader value to society, and they like that. But the challenge is that it’s a long-term investment, with a seven-year lock-in period to generate returns.”
He previously worked at Credit Suisse, where direct infrastructure investments were typically rolled into structured products. “We bought into a Spanish toll road, that was guaranteed to generate returns, but then Covid happened and no one was using the road,” he recalls. “But if it works, it’s a very effective use of capital. It has a low correlation to the liquid market experience, especially in recent times when that has been so tech oriented.”
Advertisement
A variety of assets can be attractive for wealthy families, suggests Mr Whelan. “There are the classic heavy infrastructure plays like trains, roads and planes, but there is also much more modern infrastructure, which will transform economies, including telecoms and substack security, plus crossover with the green movement.”
For the vast majority of investors, a fund-based approach is preferred, as asset managers are able to best provide investment expertise and structure for efficient vehicles. A broad but cautious interest in infrastructure is typical of most family offices, although engagement can still be sporadic. “Data centres are probably the most popular real asset now,” suggests Jack Ablin, chief investment officer of Cresset Wealth Advisors, which runs assets for wealthy families in the US. “We’re interested in clean base power. Nuclear holds promise.”
“Renewable energy is a variation on the real estate theme, because it’s something you can touch and feel, which is infrastructure,” says Sohail Jaffer from Genesis Consulting
No plain sailing
But there are also several reasons why wealthy families – particularly in the UK – can be reluctant to invest. It will not be plain sailing for investors, confirms Mr Dush at EDRAM. “Although this is an established sector, there are key challenges linked to the need for solid and proven regulation and some stability in energy prices, which has been the case apart from in 2023.”
The chief investment officer of a family office linked to a UK manufacturing company, which has recently moved from the UK to Italy, says a combination of post-Covid impact and lack of commitment from UK authorities has clouded ambitions.
“Investment in infrastructure needs stable government decision making, which we don’t currently have in the UK. There are also societal problems and tax perspectives,” he says.
Advertisement
“Covid changed the whole infrastructure and airports model. Everything was depending on footfall, on disposable income for sales in the airports. You were able to get infrastructure like returns from the airports, but Covid changed all that.”
While Mediolanum Asset Management in Dublin has launched a fund investing in “green buildings”, both residential and commercial, the firm’s CEO Furio Pietribiasi warns investors not to get carried away with “fashionable storytelling” if the proposed investments cannot be properly structured.
“So when you go to your client and tell them you are building a strategy meant to embrace a theme, you need to be able to show them the companies and explain why the companies tick the box,” he says. “This is very important, because otherwise, you end up with the with the same usual suspects of the top ten, similar to normal automative or aircraft funds, without building any real diversification for clients.”
Carbon footprint warning
Investors must also be careful they are receiving what they look for in their investment strategy. “The initial carbon footprint of wind farms can be vast before the payback period, so we need to look at these things with a clinical eye, as there is a danger of greenwashing,” says Mirabaud’s Mr Whelan. “Electric cars are also a classic example of that.”
Advertisement
Investors must also be keenly aware of the political dimension, which is never far from investment calculations when it comes to infrastructure-related investment projects.
“The larger the project, the more influence politics will have,” he says. “Take our latest high-speed rail line, HS2 for example, where the ramifications for returns can be substantial. You can be on the end of the government scrapping a project and the return profile of these changes can be significant.”
For the right client, believes Mr Whelan, some exposure to infrastructure is a good thing, provided it is part of a broader revies of asset allocations. “The danger is that people hear the buzz and suddenly put half their portfolio in, which is not ideal. Two or 3 per cent would be a more suitable allocation,” he says. “As clients’ wealth goes up, they can increase their allocation.”
Batting for inclusivity in technology, Prime Minister Narendra Modi called on the world of telecom and Internet to develop a global ecosystem that does not leave behind anyone, and provides not just connectivity, but modes for equality and opportunity.
“Our future has to be technically strong and ethically sound. In our future, innovation should be there, so should be inclusive,” said PM Modi.
The prime minister was speaking at the joint inaugural ceremony of the World Telecommunications Standardisation Assembly, as well as the India Mobile Congress. It is the first time that the global telecom body that decides on standards and framework for the operation of new telecom technologies is meeting in India.
The PM called on the world body to take a leaf out of India’s own inspirational track record in inclusivity through the Digital India mission, which he himself had set in motion ten years ago.
Advertisement
“World looked at mobile and telecom as a mode of convenience. India’s model was different — we didn’t look at telecom not as a mode of connectivity, but a mode for equity and opportunity,” Modi said, describing how the four pillars of Digital India were formulated — Device cost had to come down, Digital connectivity should reach all corners, Data should be affordable to all, and Digital first should be the aim.
Of this, Modi elucidated on how the first point led to ‘Make in India’ at first, and then the whole ‘Vocal for Local’ and PLI schemes originated. “Phones couldn’t have become cheaper unless we started making them in India. From 2 makers in 2014 to 200 manufacturing units, from being an importer, today we’re known as a mobile exporter!”, he said.
PM Modi also focused on cybersecurity, pointing out how India has come up with the Data Protection Act as well as a national cyber security strategy. “Telecom has to be safe for everyone. In this interconnected world, security should not be an afterthought,” he said, calling on the Standardisation Assembly to “Create a standard that is inclusive, accessible and is adaptable to all future challenges.”
“Create standards for rthical AI and data privacy that is adjustable with cultures of different parts of the world. No nation, region or community should be left behind in this technological age,” the PM said.
The IRS has announced the updated federal income tax brackets and standard deductions for the 2025 tax year, which will impact the taxes filed in 2026. These changes include higher income thresholds for each tax bracket, ensuring that taxpayers can potentially retain more of their income in lower brackets due to inflation adjustments. Understanding these new brackets is essential for tax planning and optimizing your personal finances.
Federal Income Tax Brackets for 2025
Federal income tax brackets define the tax rates applicable to different portions of your “taxable income.” Taxable income is calculated by subtracting either the standard deduction or itemized deductions from your adjusted gross income. Below are the updated marginal tax brackets for the 2025 tax year:
Taxable Income
Marginal Tax Rate
$23,850 or less
10%
$23,851 to $96,950
$2,385 plus 12% of the amount over $23,850
$96,951 to $206,700
$11,157 plus 22% of the amount over $96,950
$206,701 to $394,600
$35,302 plus 24% of the amount over $206,700
$394,601 to $501,050
$80,398 plus 32% of the amount over $394,600
$501,051 to $751,600
$114,462 plus 35% of the amount over $501,050
$751,601 and above
$202,154.50 plus 37% of the amount over $751,600
2025 Standard Deduction Increases
In addition to the new tax brackets, the standard deduction is set to rise in 2025:
Married couples filing jointly: $30,000 (up from $29,200 in 2024)
Single filers: $15,000 (up from $14,600 in 2024)
These changes reflect inflation adjustments, which help minimize the tax burden for many taxpayers. The higher standard deductions introduced under the Tax Cuts and Jobs Act (TCJA) of 2017 are set to expire after 2025 unless Congress extends them. Therefore, it’s crucial to take advantage of the increased standard deductions in the coming tax year.
How These Changes Impact Your Taxes
The updated federal income tax brackets and higher standard deductions may reduce your taxable income, particularly for middle- and high-income earners. To benefit from these adjustments, ensure you are aware of how the new tax rates and deductions apply to your financial situation.
Advertisement
Whether you’re a single filer or a married couple, planning ahead can help you optimize deductions, reduce taxable income, and ensure you’re prepared for any potential tax obligations in 2025.
In summary, staying informed about these federal tax updates is critical for effective tax planning. Be sure to review your financial status and consider consulting a tax professional for additional guidance in navigating the changes for the 2025 tax year.
UK ministers are keen to apply break clauses in contracts for asylum accommodation with outsourcers including Serco and Mears in an effort to renegotiate terms or end the deals.
Home Office ministers were “shocked” by the profits made by Serco, Mears and Clearsprings Ready Homes on multiyear contracts signed in 2019 and hope to use break clauses in 2026 either to revise the original terms or terminate, said two people briefed on their thinking.
“They [the companies] made way more than was originally envisaged because the asylum system became so out of control,” said one of the people. The Home Office was regularly bidding against other Whitehall departments for hotel and dispersal accommodation, driving up prices, the person added.
In 2019, the previous Conservative government overhauled the procurement of asylum accommodation. It said the changes would ensure vulnerable asylum seekers had access to support and set clear requirements for housing conditions, although human rights groups have continued to warn that some asylum accommodation remains unsafe.
Advertisement
In the same year, 10-year contracts for asylum accommodation were awarded to Serco in the Midlands, North West and east of England, Mears in the North East and Yorkshire and the Humber, and Clearsprings in the south of England.
The contracts, which contained break clauses after seven years in 2026, will cost the state about £4.6bn in total, according to government procurement data provider Tussell. Tussell’s figures also include Mears contracts in Scotland and Northern Ireland, and a Clearsprings contract in Wales.
The three companies do not specify the returns made on the contracts. But last year Clearsprings, whose principal source of business is asylum contracts with the Home Office, reported an increase in operating profit to £62.5mn, from £1.9mn in 2019.
Its profit margin — the proportion of revenue that is profit — rose from about 3.5 per cent to 5.8 per cent in the same period.
Advertisement
In corporate filings last year, Mears said its contract brought in about £440mn in revenues — up £90mn on the previous 12 months — and accounted for 40 per cent of total revenues. In 2019, the company said it expected the contract to account for roughly 15 per cent of total revenues.
Since 2021, Mears’ profits have jumped 83 per cent to £47mn, and last year it warned that losing the asylum contract in 2026 was a “principal risk” to its business. Shares in London-listed Mears closed down 13 per cent on Wednesday at £3.32, the lowest since February.
Serco won asylum contracts worth £1.9bn in 2019, the company’s largest-ever contract, and now accommodates more than 30,000 men, women and children.
It reported a 5 per cent increase in overall profits between 2022 and 2023 to £249mn, and this year noted that profit margins on UK and European work had increased from 3.4 per cent in 2022 to 6.8 per cent in the first half of 2024.
Advertisement
Serco operates across a number of sectors and in different countries, but when it increased its profit guidance last year, the company said the decision was in part because of “robust demand for immigration services”.
Joe Brent, analyst at investment bank Panmure Liberum, said UK asylum contracts had been a “source of profit growth” to Serco.
“If Labour succeeds in reducing the company’s level of returns considerably, it will reach a point where Serco goes elsewhere,” Brent said. “There aren’t many contractors that can deliver this at scale. It’s risky, intense, complex work, where capital is deployed and they have to deliver a return.”
The government has vowed to end the use of hotels and mass accommodation sites to house asylum seekers, but it has struggled to reduce reliance on hotels even as some large-scale sites, such as the Bibby Stockholm barge, are set to close.
Advertisement
The government has been spending more than £8mn a day on hotel accommodation for asylum seekers, and in recent weeks ministers have contacted hotel providers to procure extra spaces after a rise in small boat Channel crossings.
The Home Office did not respond to a request for comment.
Serco said it had won its contracts “following a competitive tender to ensure that value for money was achieved for the taxpayer”.
“We make low single-digit returns across our UK government business, and in the previous asylum accommodation contracts we lost more than £100mn,” it added, referring to contracts that ran between 2012 and 2019.
Advertisement
Mears said its profits related to performance across all activities, not just asylum contracts, and that its improved financial performance since 2021 had “come from an artificially low base because of the impacts of the pandemic”.
The company also said its contracts with the government stipulated caps on the level of profits the company could make and arrangements to return “surplus profit” to the client. It did not say how much profit if any it had returned to the Home Office since 2019.
“Mears has, over recent years, returned to operating margins that would be recognised as appropriate in the sectors in which it operates . . . in line with the historical performance of the group,” it added.
To apply for the scheme, which is run in partnership with Age UK, pensioners should contact the charity’s Cambridgeshire and Peterborough branch.
The charity will then assess each claim, and suggest alternative forms of winter support if applicable.
Labour councillor Alison Jones said: “With winter just around the corner, we wanted to do something to specifically help older people who may be struggling and feeling vulnerable right now.”
Many other councils around the country are using the Household Support Fund to give one-off payments to vulnerable pensioners.
Fuel duty hike is double blow after Winter Fuel Payment loss, says pensioner
Charities are also giving out gadgets such as air-fryers and heated blankets to help those struggling with energy bills.
Labour’s decision to scrap winter fuel payments was announced by Chancellor Rachel Reeves earlier this year.
However, the support will still be available to those on certain benefits – including Pension Credit, income support, tax credits and Universal Credit.
Advertisement
How has the Household Support Fund evolved?
The Household Support Fund was first launched in October 2021 to help Brits pay their way through winter amid the cost of living crisis.
Councils up and down the country got a slice of the £421million funding available to dish out to Brits in need.
It was then extended for a second time in the 2022 Spring Budget and for a third time in October 2022 to help those on the lowest incomes with the rising cost of living.
If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:
you live in Switzerland or a EEA country
you have a “genuine and sufficient” link with the UK social security system, such as having lived or worked in the UK and having a family in the UK
But there are exclusions – you can’t get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain.
This is because the average winter temperature is higher than the warmest region of the UK.
You will also not qualify if you:
Advertisement
are in hospital getting free treatment for more than a year
need permission to enter the UK and your granted leave states that you can not claim public funds
were in prison for the whole “qualifying week”
lived in a care home for the whole time between 26 June to 24 September 2023, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance
Payments are usually made between November and December, with some made up until the end of January the following year.
The National Coal Mining Museum was named of the country’s best hidden gem attractions earlier this yearCredit: Alamy
4
Advertisement
Santa Underground is an underground Christmas grottoCredit: National Coal Mining Museum for England Trust
Located in West Yorkshire, the National Coal Mining Museum is housed at the former Caphouse Colliery, which dates back to the 18th century.
The museum opened to the public in 1988 and offers visitors a deep insight into the life and work of coal miners, preserving the rich industrial heritage of the region.
Later this year, the National Coal Mining Museum will host a Christmas event called Santa Underground.
Visitors will descend 140m underground where they’ll head to a “one-of-a-kind” Christmas grotto to meet the big man himself.
Advertisement
At the event, Children will receive an age-appropriate gift and a certificate.
Previous visitors to Santa Underground have raved about the attraction, with one person writing on TripAdvisor: “I can’t write I can’t fault anything.
“The staff were fantastic and friendly, the underground tunnel to Santa’s grotto was magical and the grotto itself was enchanting.
“Santa spent a lot of time talking to the children and going underground in an original miners’ lift was very exciting.”
Advertisement
Tickets to Santa Underground cost £10 for a full-paying adult and £13 for kids.
Named one of the UK’s best hidden gem attractions, there are plenty of other things to do at the National Coal Mining Museum.
Jet2 Launches Biggest Ever Winter Package from Scotland
Set across two former coal mines, visitors can learn about over 200 years of coal production.
On volunteer-led underground tours, visitors will hear stories from former coal miners.
Advertisement
There are above-ground attractions too, including a nature trail, an adventure playground and a pony discovery centre where visitors can meet ponies.
The battery-powered Paddy Train is another popular attraction at the sprawling museum.
Previously used to ferry miners around the pit, museum-goers who visit during peak hours can ride on the train from Caphouse to Hope and back again.
Entry into the National Coal Mining Museum is free, although a £5 donation is encouraged. Underground tours cost an additional £7.50.
Advertisement
Despite not being well-known as a tourist destination, there are plenty of other things to do in Wakefield.
One of those is Hepworth Wakefield, an art gallery that overlooks the River Calder.
Named after artist Barbara Hepworth, the award-winning museum is home to displays of artwork like sculptures and still life paintings.
Wakefield Cathedral is another popular attraction in the city, with the tallest church spire in Yorkshire.
Advertisement
Other nearby attractions include Diggerland – one of the strangest theme parks in the UK.
Visitors can spend the day riding dumper trucks around a gravel pit, digging stones out of a hole with a full-sized digger and riding around a muddy concourse while seated in an enormous bucket.
Wakefield is a 70-minute drive from Manchester, and it’s a 20-minute drive from Leeds.
Five other unusual museums to visit in the UK
Advertisement
HERE are five other unusual museums to visit in the UK.
The Dog Collar Museum, Leeds Castle, Kent This unique museum houses a fascinating collection of dog collars dating from the 15th century to the present day. The display includes ornate and practical collars, illustrating the changing relationship between humans and their canine companions.
The British Lawnmower Museum, Southport Dedicated to the history and development of the lawnmower, this quirky museum features over 300 restored exhibits, including lawnmowers once owned by Princess Diana.
The Museum of Witchcraft and Magic, Boscastle, Cornwall This intriguing museum explores the history, folklore, and practices of witchcraft and magic, with a collection of over 3,000 objects. Visitors can delve into exhibits ranging from spell books and charms to tools and ceremonial items.
Advertisement
The Fan Museum, Greenwich, London The only museum in the UK dedicated solely to fans and fan-making, it boasts an extensive collection of fans dating from the 11th century to the present day. The museum also features beautifully decorated rooms and a tranquil Japanese-style garden.
The Cumberland Pencil Museum, Keswick, Cumbria Celebrating the humble pencil, this museum traces the history of pencil manufacturing in Keswick, home of the first pencil factory. Highlights include the world’s largest colouring pencil and a secret World War II pencil with hidden maps.
Here are the 25 best ice rinks to visit in London and the South East.
The list of Indian cities ranked for digital readiness, unveiled at the India Mobile Congress on Wednesday afternoon threw up some surprises. Bengaluru and Gurugram, or for that matter, the heavy duty metros of Delhi and Mumbai, were conspicuous by their absence in the top 10.
The list, compiled by OpenSignal, looked at the ten most populous cities in the country, as well as designated smart cities. The topper turned out, ironically enough, to be Srinagar. The very capital of Jammu & Kashmir that has been more associated with internet shutdowns that superior internet quality.
But that evidently is the verdict of OpenSignal, the world’s leading evaluator of mobile and network quality. It looked at three parameters – 4G/5G availability, consistent quality, as well as download speeds, to come up with the winner.
Interestingly, none of the metro cities made it into the top 10, with Agra taking the second spot, followed by Faridabad in Haryana, which is technically in Delhi BCR, though. The highest metro placement is Delhi at No.13, Chennai at No.19 and Kolkata at No.20 (Howrah comes in at No.21)
For the larger Mumbai metropolitan region, Kalyan-Dombivali fared better than main Mumbai city, coming in one position ahead of the maximum city at No. 26. Navi Mumbai came in at a lowly No.31 (Vasai-Virar at No.49).
Bengaluru, the IT capital of the country, shockingly came at just No. 34, despite being a designated smart city to boot.
After Srinagar, Agra and Faridabad in the top three, the following cities rounded out the top 10, in order: Jaipur, Patna, Ranchi, Meerut, Madurai and Dhanbad, with Ahmedabad and Coimbatore jointly sharing the No.10 spot.
The data for the survey was collected by OpenSignal between February and July-end of this year.
You must be logged in to post a comment Login