Opportunity through necessity: Macquarie infrastructure fund marks three year track record

Marking the three year anniversary of the CF Macquarie Global Infrastructure Securities Fund (“the Fund”), portfolio manager Justin Lannen outlines investment opportunities in the sector.

In July the infrastructure sector¹ returned 3.10% compared to global equities², which returned 2.97% whilst the Fund returned 6.32%.

Since launch the Fund³, which is not managed relative to a benchmark, has returned 20.16% over 12 months⁴;and 3.12 % since inception⁵, taking advantage of listed infrastructure investment opportunities found in emerging and developed markets⁶. The main geographic allocation of the Fund has been to developed markets; however emerging markets have comprised 10 – 15% of the portfolio since launch.

“Core infrastructure assets provide essential services; examples include water companies, electricity providers, and transportation hubs such as airports and seaports. We see infrastructure as a high growth asset class due to strong underlying demand and new growth opportunities,” said Justin Lannen, portfolio manager of the CF Macquarie Global Infrastructure Securities Fund.

“In the current environment we are seeing demand from investors looking for income as well as assets which may act as a hedge against rising inflation. Infrastructure companies often provide regulated rates of return and high dividend yields that are comparable to UK equity income funds,” said Lannen.

“Infrastructure is a unique asset class which has high barriers to entry. Macquarie Funds Group has a strong track record in managing infrastructure assets worldwide and the business is committed to helping UK investors access investment opportunities that would otherwise be closed to them,” said Duncan Hodnett, Associate Director – UK Distribution, Macquarie Funds Group.

1. As measured by the FTSE Macquarie Global Infrastructure Total Return Index (FTSE MGII) in GBP
2. As measured by the MSCI World Index in GBP
3. 22 June 2007
4. To 31 July 2010
5. 22 June 2007
6. Past performance is not a reliable indicator of future performance