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Listed infrastructure delivers strong gains

Research house Zenith’s latest review of the infrastructure sector has found it generated a healthy return of 19.9 per cent to 30 April 2015, as reflected by the S&P Global Infrastructure Index ($A hedged).

“Pleasingly, the overall performance of listed infrastructure managers on Zenith’s approved product list was strong, with the majority of rated managers outperforming Zenith’s assigned benchmark,” senior investment analyst Jonathan Baird said.

The “2015 Infrastructure Sector Review” found the Lazard Global Listed Infrastructure Fund delivered the best result among managers that hedged out currency fluctuations, producing an annual return of 24.3 per cent for the period ending in April.

In the unhedged managers group, the AMP Global Infrastructure Securities Fund was the best performer, generating a return of 32.6 per cent on the year.

“Given the recent volatility experienced in energy and bond markets, for example, Zenith took a close look at the correlations and causation of the asset classes’ sensitivity to a range of factors,” Baird said.

“It was particularly apparent that currency movements once again provided a real tailwind for unhedged strategies versus hedged strategies. Zenith has continued to see significant growth in funds under management (FUM) across our rated managers; and each manager’s respective view on capacity constraints is something we constantly review and consider very carefully.

“The increase in FUM has also resulted in a corresponding increase in investment team resourcing for many of these funds.”

The research house concluded allocations to listed infrastructure strengthened an investment portfolio’s characteristics and enhanced its diversification.

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