September, 2023
The 4D Global Infrastructure Fund (Hedged) was down a net 3.24% in September 2023, under-performing the benchmark’s return of 0.70% (by 3.94%) but out-performing the FTSE 50/50 Infrastructure Index which was down 4.15%.
The strongest performer for September was Chinese port operator, China Merchants Port up 6.3% over the month. Despite a weak Chinese outlook, August saw some stabilisation in throughput volumes and management reiterated guidance which saw the stock bounce a little of August lows.
The weakest performer in August was US integrated regulated utility, Nextera down 14.2% for the month after its 54% owned subsidiary, Nextera Energy Partners, cut its dividend citing rising interest rates impacting their ability to execute on growth strategy.
Markets remain volatile on inflation/interest rate/economic growth concerns. Most developed market Central Banks are getting close to their peak policy rates, with a view to hold rates higher for longer, in an effort to get core inflation back to within target bands over a sustained period. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/sep-2023-1.pdfAugust, 2023
The 4D Global Infrastructure Fund (Hedged) was down a net 4.89% in August 2023, under-performing the benchmark’s return of 0.67% (by 5.56%) and slightly under performing the FTSE 50/50 Infrastructure Index which was down 4.70%.
In August, European stocks contributed positively to performance, whilst Chinese exposure was the largest detractor.
The strongest performer for August was Indonesian toll road operator Jasa Marga, up 11.1% on strong 1H earnings as earnings exceeded expectations, the capex cycle slows and guidance moves up.
The weakest performer in August was Chinese gas distributor ENN Energy down 34.4% for the month after results missed consensus earnings estimates. The stock has been completely over-sold on short term noise.
Markets remain volatile on inflation/interest rate/economic growth concerns. Most developed market Central Banks are getting close to their peak policy rates, with a view to hold rates higher for longer, in an effort to get core inflation back to within target bands over a sustained period. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/aug-2023.pdfJuly, 2023
The 4D Global Infrastructure Fund (Unhedged) was up a net 0.86% (AUD) in July 2023, under-performing the benchmark’s return of 1.03% (by 0.16%) and in line with the FTSE 50/50 Infrastructure Index which was up 0.84% (AUD).
The strongest performer for July was Brazilian toll road operator, Ecorodovias up 26.3% as the market starts to rerate on expectations of a Brazilian interest rate cut (which happened in early August – 50bps). The stock had been over sold due to its high growth outlook in a high interest rate environment so the downward trajectory eases concerns around the funding of growth.
The weakest performer in July was again Italian multi-utility ACEA, down 7% as uncertainty around management persists. We believe the concerns are justified and are reducing our position in the stock.
Markets remain volatile on inflation/interest rate/economic growth concerns. Central Banks are still looking to tighten monetary policy to get inflation back to within target bands.
The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/jul-2023.pdfJune, 2023
The 4D Global Infrastructure Fund (Unhedged) was up a net 2.26% (AUD) in June 2023, out-performing the benchmark’s return of 0.84% (by 1.42%) and the FTSE 50/50 Infrastructure Index which was down 0.04% (AUD). Currency detracted 93bps from performance in June.
The strongest performer for June was the US pipeline operator Williams, up 15.5% for the month, recovering some recent weak performance with gas prices bottoming and sentiment improving in the sector.
The weakest performer in June was the Italian multi-utility ACEA, down 5.4% as uncertainty around management continues to weigh on the stock. We believe the concerns are justified and are reviewing our position in the stock.
Markets remain volatile on inflation/interest rate/economic growth concerns. Central Banks are still looking to tighten monetary policy to get inflation back to within target bands.
The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/jun-2023.pdfMay, 2023
The 4D Global Infrastructure Fund (Unhedged) was down a net 2.97% (AUD) in May 2023, under-performing the benchmark’s return of 0.95% (by 3.92%) but marginally outperforming the FTSE 50/50 Infrastructure Index which was down 3.0% (AUD). Currency contributed 34bps to performance in May.
The strongest performer for May was Chinese gas distributor, China Resources Gas +7.7% as news of fuel cost pass through and property led stimulus improve the 2023 earnings outlook.
The weakest performer in May was Chinese toll road operator Yuexiu Transport down 13.1% over concerns that the re-opening is not happening as fast as originally anticipated.
Markets remain volatile on inflation/interest rate/economic growth concerns. Central Banks are still looking to tighten monetary policy to get inflation back to within target bands. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also well positioned should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/may-2023.pdfApril, 2023
The 4D Global Infrastructure Fund (Unhedged) was up a net 5.05% (AUD) in April 2023, out-performing the benchmark’s return of 1.08% (by 3.97%) and out-performing the FTSE 50/50 Infrastructure Index which was up 3.55% (AUD).
Currency contributed 223bps to performance in April. The strongest performer for April was again Brazilian toll road operator, Ecorodovias up 19.1% in the month. This is a continuation of March’s justified re-rating as the stock was very much oversold on capex/leverage concerns over the last few months.
The weakest performer in April was again Chinese gas distributor China Resource Gas down 14.5% on ongoing concerns around the speed of Chinese recovery and gas fundamentals. The market has completely over sold the stock on short term noise.
Markets remain volatile on inflation/interest rate/economic growth concerns, and recently emerged bank liquidity issues. Central Banks are tightening monetary policy to get inflation back to within target bands. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should central banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/apr-2023.pdfMarch, 2023
The 4D Global Infrastructure Fund (Unhedged) was up a net 4.49% (AUD) in March 2023, out-performing the benchmark’s return of 0.13% (by 4.36%) and out-performing the FTSE 50/50 Infrastructure Index which was up 3.74% (AUD). Currency contributed 224bps to performance in March.
The strongest performer for March was Brazilian toll road operator, Ecorodovias up 26.3% in the month. This represents the start of a justified re-rating as the stock was very much oversold on capex/leverage concerns over the last few months.
The weakest performer in March was Chinese gas distributor China Resource Gas down 12.5% after H2 22 energy shortages and ongoing COVID lockdowns impacted FY reporting. The market completely over sold the stock on what should have been expected news and we are positioned for a re-rating once the positive 2023 outlook is reflected.
Markets remain volatile on inflation/interest rate/economic growth concerns, and recently emerged bank liquidity issues. Central Banks are tightening monetary policy to get inflation back to within target bands. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should central banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/mar-2023.pdfFebruary, 2023
The 4D Global Infrastructure Fund (Unhedged) was up a net 0.97% (AUD) in February 2023, out-performing the benchmark’s return of 0.40% (by 0.57%) and out-performing the FTSE 50/50 Infrastructure Index which was down 0.44% (AUD). Currency contributed 295bps to performance in February.
The strongest performer for February was Mexican airport operator GAP up 7% after yet another strong quarter of results and an ongoing robust outlook for 2023.
The weakest performer in February was US tower operator SBA Communications down 12.8%. While Q4 reporting was solid, the resignation of long term CEO, Jeff Stoop, raised some concerns given his significant success with the Company and its current peer premium valuation.
The market remains incredibly volatile on inflation/interest rate/growth concerns as central banks around the world raise rates in an effort to bring inflation back to target levels. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and we believe the current weakness is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/feb-2023.pdfJanuary, 2023
The 4D Global Infrastructure Fund (Unhedged) was up a net 4.33% (AUD) in January 2023, out-performing the benchmark’s return of 1.23% (by 3.10%) and out-performing the FTSE 50/50 Infrastructure Index which was down 1.24% (AUD). Currency detracted 240bps from performance in January.
The strongest performer for January was European airport operator, Fraport up 36.2% as China’s re-opening offers a second wave of passenger recovery for the airport operators.
The weakest performer in January was US utility NextEra Energy down 10.7% following the retirement of Eric Silagy and concerns around election campaign finance violations. The Company remain confident that internal investigations were thorough and no violation occurred, albeit internal processes could be strengthened. We remain buyers.
The market remains incredibly volatile on inflation/interest rate/growth concerns as central banks around the world raise rates in an effort to bring inflation back to target levels. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and we believe the current weakness is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/jan-2023.pdfDecember, 2022
The 4D Global Infrastructure Fund (Unhedged) was down a net 2.25% (AUD) in December 2022, under-performing the benchmark’s return of 0.83% (by 3.08%) but out-performing the FTSE 50/50 Infrastructure Index which was down 3.33% (AUD). Currency contributed 22bp to performance in December.
The strongest performer for December was Chinese toll road operator Yuexiu Transport +16.4% recovering off a very low valuation as China rapidly re-opens and talks of stimulus gain traction.
The weakest performer in December was Mexican Airport operator GAP down 10.3%. There was no negative news on the story in December and expect this was profit taking – we see it as a buying opportunity.
The market remains incredibly volatile on inflation/interest rate/growth concerns as central banks around the world raise rates in an effort to bring inflation back to target levels. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and we believe the current weakness is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/dec-2022.pdfNovember, 2022
The 4D Global Infrastructure Fund (Unhedged) was up a net 3.58% (AUD) in November 2022, out-performing the benchmark’s return of 0.58% (by 3.00%) and out-performing the FTSE 50/50 Infrastructure Index which was up 3.06% (AUD). Currency detracted 272bps from performance in November.
The strongest performer for November was Chinese infrastructure conglomerate Guangdong Investments up 44.6% on signs that China is moving away from its zero Covid policy and towards re-opening with associated sector support by way of stimulus.
The weakest performer in November was Brazilian toll road operator Ecorodovias down 19.9%. This sell off is hard to explain with Q3 results better than expected and signs that leverage (a market concern) was turning a corner. Definitely see this sell off as a buying opportunity.
The market remains incredibly volatile on inflation/interest rate/growth concerns as central banks around the world raise rates in an effort to bring inflation back to target levels. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and we believe the current weakness is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/nov-2022.pdfOctober, 2022
The 4D Global Infrastructure Fund (Unhedged) was up a net 5.20% (AUD) in October 2022, out-performing the benchmark’s return of 0.67% (by 4.53%) and out-performing the FTSE 50/50 Infrastructure Index which was up 3.95% (AUD). Currency contributed 118bps to performance. The best portfolio performer in October was Mexican airport operator, OMA up 24.6% after a strong Q3 as traffic rebounds, operational efficiencies improve margins and inflation boosts the bottom line. The weakest performer in October was gas distributor China Gas Holdings down 26% on the back of concerns around an ongoing commitment to COVID-zero which was exacerbated by a significant Hong Kong sell off on the 31st of the month.
The market remains incredibly volatile on inflation/interest rate/growth concerns as central banks around the world raise rates in an effort to bring inflation back to target levels. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and see the current weakness as a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/oct-2022.pdfSeptember, 2022
The 4D Global Infrastructure Fund (Unhedged) was down a net 6.58% (AUD) in September 2022, under-performing the benchmark’s return of 1.43% (by 8.01%) and slightly underperforming the FTSE 50/50 Infrastructure Index which was down 5.85% (AUD). Currency contributed 400bps to
performance in August.
The best portfolio performer in September was Italian tower operator Inwit down 3.1% on news of ongoing restructure and a management reshuffle please the market.
The weakest performer in September was Chinese gas
distributor China Resources Gas down 18.2% as an ongoing COVID zero policy amongst rising cases as well as ongoing property market concerns see growth expectations under review.
The market remains incredibly volatile on inflation/interest rate/growth concerns as central banks around the world raise rates in an effort to bring inflation back to target levels. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and see the current weakness as a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/sep-2022.pdfAugust, 2022
The 4D Global Infrastructure Fund (Unhedged) was down a net 1.08% (AUD) in August 2022, under-performing the benchmark’s return of 1.4% (by 2.48%) and underperforming the FTSE 50/50 Infrastructure Index which was up 0.30% (AUD). Currency contributed 106bps to performance in August.
The best portfolio performer in August was Brazilian rail operator Rumo up 15.2% as forecasts were upgraded post a strong Q2 and improved FY outlook. The weakest performer in August was Italian multi utility ACEA down 15.2% on concerns over energy prices and Italian political instability.
The market remains incredibly volatile on inflation/interest rate/growth concerns as central banks around the world raise rates in an effort to bring inflation back to target levels. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and we believe the current weakness is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/aug-2022.pdfJuly, 2022
The 4D Global Infrastructure Fund (Unhedged) was up a net 2.27% (AUD) in July 2022, out-performing the benchmark’s return of 1.09% (by 1.18%) but under-performing the FTSE 50/50 Infrastructure Index which was up 3.20% (AUD). Currency detracted 240bps from performance in July.
The strongest performer for July was European tower operator Cellnex up 17.7%. The stock had been under pressure for many months on concerns that it would overpay for the DT tower portfolio. The company exited the process reassuring investors of their strong capital discipline – the stock rallied as a result.
The weakest performer in July was Chinese gas distributor China Resources Gas down 9.8%. The stock has been strong over the last few months, despite China’s ongoing COVID zero policy, and expect we saw some profit taking in July. The market remains incredibly volatile on inflation/interest rate/growth concerns as central banks around the world raise rates in an effort to bring inflation back to target levels. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and we believe the current weakness is a buying opportunity for the asset class.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/jul-2022.pdfJune, 2022
Portfolio performance review
The 4D Global Infrastructure Fund was down a net 5.82% (AUD) in June 2022, under-performing the benchmark’s return of 1.75% (by 7.57%) and under-performing the FTSE 50/50 Infrastructure Index which was down 2.03% (AUD). Currency contributed 169bps to performance in June.
The strongest performer for June was Chinese gas distributor, China Resources Gas Group +11.3% for the month as China slowly begins to re-open supporting demand profiles for the gas operators.
The weakest performer in June was Brazilian toll road operator Ecorodovias down 22.7% due to on-going concerns around inflation, higher interest rates and a higher than normal leverage level as they execute on a significant growth program. While financing costs will be higher than normal the company has a solid earnings profile hedged to inflation to support the future opportunity set and we believe it has been oversold.
The market has been incredibly volatile on inflation/interest rate concerns as central banks around the world raise rates in an effort to bring inflation to a more reasonable level. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long term predictable earnings profiles under pinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and we believe the current weakness is a buying opportunity for the asset class.
May, 2022
The 4D Global Infrastructure Fund was up a net 2.33% (AUD) in May 2022, out-performing the benchmark’s return of 1.30% (by 1.03%) and out-performing the FTSE 50/50 Infrastructure Index which was up 1.45% (AUD). Currency contributed 20bps to performance in May.
The strongest performer for May was Chinese gas distributor, China Gas Holdings Ltd +21.6% for the month off a very oversold position. Concerns around China’s ongoing lockdowns and repercussions from last year’s gas plant explosion (non-controlled associate) have weighed on the stock and growth expectations. It continues to offer very attractive risk/return at these levels, and we maintain our position.
The weakest performer in May was European tower operator, Cellnex down 5.7% as concerns around inflation and M&A execution continue to pressure the stock. We believe the concerns are unwarranted and continue to rate this stock as a top position
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/may-2022.pdfApril, 2022
The 4D Global Infrastructure Fund was up a net 1.65% (AUD) in April 2022, outperforming the benchmark’s return of 1.12% (by 0.53%) but slightly under-performing the FTSE 50/50 Infrastructure Index which was up 1.82% (AUD). Currency contributed 237bps to performance in April. The strongest performer for April was the European utility Iberdrola up 11% after strong Q1 results despite the very unique energy market in Europe at present. The stock had been oversold on concerns around energy pricing and the Q1 performance and reiteration of guidance saw a much-deserved re-rating.
The weakest performer in April was Brazilian rail operator Rumo down 11.7% on concerns that a previously expected very strong corn crop could be threatened by lack of rain towards the point of harvest. Rumo has locked in most of its capacity in take or pay contracts so the sell off is unwarranted.
We continue to believe Central Banks will act prudently and cautiously in adjusting monetary policy in response to inflation pressures. But regardless we believe infrastructure is an asset class that can do well in an inflationary environment, and we believe it is a sensible portfolio allocation at the current stage of the economic cycle. Within infrastructure we continue to favour user pays and real return utilities.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/apr-2022.pdfMarch, 2022
The 4D Global Infrastructure Fund was up a net 1.93% (AUD) in March 2022, outperforming the benchmark’s return of 0.75% (by 1.18%) but underperforming the FTSE 50/50 Infrastructure Index which was up 3.89% (AUD). Currency detracted 292bps from performance in March.
The strongest performer for March was the Brazilian rail operator Rumo up 19.7% as the outlook for crops continues to improve supporting 2022 volumes.
The weakest performer in March was the Chinese gas distribution company China Gas Holdings down 18.8% as fears around dollar margins continue to be an overhang with commodity prices elevated as a result of Ukraine conflict. Factoring in a worst-case scenario the stock remains oversold.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/mar-2022.pdfFebruary, 2022
The 4D Global Infrastructure Fund was down a net 1.76% (AUD) in February 2022, under-performing the benchmark’s return of 0.81% (by 2.57%) but out-performing the FTSE 50/50 Infrastructure Index which was down 3.25% (AUD). Currency was a net detractor in February costing the fund 230bps. The strongest performer for February was Cheniere Energy up 19.1% as the conflict in Ukraine pushed global LNG prices higher and Cheniere announced upgrades to 2022 earnings - stemming from the early completion of Sabine Pass Train 6 in combination with the elevated global gas prices through 2022 and looking forward.
The weakest performer in February was Brazilian toll road operator, Ecorodovias down18.1% as concerns around inflation continue to pressure the Brazilian infrastructure sector as well as the departure of the CEO concerning the market. With direct inflation hedges on all Brazilian infrastructure assets we see this continued volatility as a buying opportunity for the sector.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/feb-2022.pdfJanuary, 2022
The 4D Global Infrastructure Fund was up a net 1.03% (AUD) in January 2022, under-performing the benchmark’s return of 1.12% (by 0.09%) but out-performing the FTSE 50/50 Infrastructure Index which was up 0.06% (AUD). Currency was a strong net contributor in January (+305bps).
The strongest performer for January was Williams Co up 15% as perceived energy names benefited from ongoing energy shortages and threat of activity by Russia.
The weakest performer in January was European tower operator Cellnex, down 21.3%. The market seems undecided whether Cellnex is a tech play or a bond proxy. We believe it is neither and see this sell-off as a huge buying opportunity for a very attractive infrastructure name.
We continue to believe Central Banks will act prudently and cautiously in adjusting monetary policy in response to inflation pressures. But regardless we believe infrastructure is an asset class that can do well in an inflationary environment and we believe it is a sensible portfolio allocation at the current stage of the economic cycle. Within infrastructure we continue to favour user pays and real return utilities.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/jan-2022.pdfDecember, 2021
The 4D Global Infrastructure Fund was up a net 2.93% (AUD) in December 2021, out-performing the benchmark’s return of 0.70% (by 2.23%) but under-performing the FTSE 50/50 Infrastructure Index which was up 4.70% (AUD). Currency detracted 177bps from performance in December. The strongest performer for December was Chinese port operator China Merchants +18.1% for the month following news of strong tariff increases across key Chinese ports. The weakest performer in December was Brazilian toll road operator, Ecorodovias down 11.8%. The stock remains unjustifiably pressured on Brazilian inflation concerns. We continue to position for economic recovery. We believe Central Banks will act prudently and cautiously in adjusting monetary policy in response to inflation pressures. But just at the present uncertainty prevails and caution is warranted. In this regard infrastructure is an asset class that can do well in an inflationary environment and we believe it is a sensible portfolio allocation at the current stage of the economic cycle. Within infrastructure we are favouring user pays and real return utilities.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/dec-2021.pdfNovember, 2021
The 4D Global Infrastructure Fund was up a net 0.38% (AUD) in November 2021, under-performing the benchmark’s return of 0.67% (by 0.29%) and under-performing the FTSE 50/50 Infrastructure Index which was up 2.47% (AUD). Currency was a net contributor in November. The strongest performer for November was Brazilian rail operator, Rumo +9.9% up on the back of news that after a weak 2021, the crop outlook for 2022 looks very promising. The weakest performer in November was China Gas Holdings down 28% as the stock was completely oversold on a slight miss in H1 earnings due to lower connections. We continue to position for economic recovery, with infrastructure an integral component of that global bounce back. There remains a raft of attractive investment opportunities on offer in the sector.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/nov-2021.pdfOctober, 2021
4D Infrastructure is a boutique asset manager investing in listed infrastructure companies across all four corners of the globe. Our investment objective is to identify quality infrastructure companies, trading at or below fair value with sustainable, growing earnings combined with sustainable, growing dividends. The 4D Global Infrastructure Fund aims to outperform the OECD G7 Inflation Index + 5.5% p.a. over the medium to long term
The 4D Global Infrastructure Fund was down a net 1.43% (AUD) in October 2021, under-performing the benchmark’s return of 0.89% (by 2.32%) and under-performing the FTSE 50/50 Infrastructure Index which was down 0.25% (AUD). Currency detracted 402bps in October with local performance positive.
The strongest performer for October was Spanish integrated utility Iberdrola, up 17.6%. The stock had been over sold and the re-rating came on the back of a strong set of Q3 results as well as the Spanish government relaxing the “clawback” provisions that had resulted in the original sell off
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/oct-2021.pdfSeptember, 2021
The 4D Global Infrastructure Fund aims to outperform theOECD G7 Inflation Index + 5.5% p.a. over the medium to long term (before fees).
The 4D Global Infrastructure Fund was down a net 2.51% (AUD) in September 2021, under-performing the benchmark’s return of 1.06% (by 3.57%) but in line with the FTSE 50/50 Infrastructure Index which was down 2.45% (AUD). Currency accounted for 26bps of the underperformance in September. The strongest performer for September was Chinese toll road operator Yuexiu Transport up 12.9% recovering from an oversold position post the recent COVID outbreak. The weakest performer in September was Brazilian contract generator AES Brasil down 19.3% following worsening country hydrology as well as the announcement of an equity raise to fund the companies diversified green energy growth strategy but without any clarity provided on the targets.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/sep-2021.pdfAugust, 2021
The 4D Global Infrastructure Fund was up a net 1.65% (AUD) in August 2021, out-performing the benchmark’s return of 1.02% (by 0.63%) but under performing the FTSE 50/50 Infrastructure Index which was up 2.87% (AUD). Currency contributed 29bps to performance in August.
The strongest performer for August was Chinese port operator, China Merchant Port Holdings up 21.1% post a positive H1 profit alert followed by results beating revised expectations. The stock is positioned very well to capitalise on the on-going recovery in demand
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/aug-2021.pdfJuly, 2021
The 4D Global Infrastructure Fund was up a net 2.06% (AUD) in July 2021, out-performing the benchmark’s return of 1.04% (by 1.02%) but under performing the FTSE 50/50 Infrastructure Index which was up 3.50% (AUD). Currency contributed 169bps to performance in July.
The strongest performer for July was Indonesian toll road operator Jasa Marga up 11.9%, rebounding off an oversold position as H1 results beat expectations. The ongoing COVID crisis in Indonesia represents a near term overhang but the fundamental thesis is offering significant value at these levels.
The weakest performer in July was Mexican tower operator Telesites down 9.9% due to the bankruptcy filing of a potentially key co-location customer and Q2 results towards the end of the month that missed market expectations. We continue to position for economic recovery, with infrastructure an integral component of that global bounce back. There remains a raft of attractive investment opportunities on offer in the sector
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/jul-2021.pdfJune, 2021
The 4D Global Infrastructure Fund was up a net 0.55% (AUD) in June 2021, under-performing the benchmark’s return of 1.01% (by 0.46%) and the FTSE 50/50 Infrastructure Index which was up 2.10% (AUD). Currency contributed 190bps to performance in June. The strongest performer for June was US midstream operator Targa Resource Group up 14.4% as a result of its correlation to buoyant commodity pricing.
The weakest performer in June was Chinese gas distributor China Gas Holdings down 18.1% after a gas explosion at one of its nonoperated plants saw loss of life and increased scrutiny by the PRC. While a penalty is anticipated we don’t expect operational issues to be a Group wide issue and the stock was oversold.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/jun-2021.pdfMay, 2021
The 4D Global Infrastructure Fund was up a net 2.91% (AUD) in May 2021, out-performing the benchmark’s return of 0.86% (by 2.05%) and also out-performing the FTSE 50/50 Infrastructure Index which was up 0.33% (AUD). Currency contributed 92bps to performance in May.
The strongest performer for May was Chinese gas distributor, Chinese Resources Gas up 16.9% on strong volume outlook The weakest performer in May was Indonesian toll road operator Jas Marga down 4.8% as a result of general market volatility with fundamentals unchanged.
We continue to position for economic recovery, with infrastructure an integral component of that global bounce back. There remains a raft of attractive investment opportunities on offer in the sector
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/may-2021.pdfApril, 2021
The 4D Global Infrastructure Fund was up a net 2.39% (AUD) in April 2021, out-performing the benchmark’s return of 0.87% (by 1.52%) and out performing the FTSE 50/50 Infrastructure Index, which was up 2.02% (AUD).
The strongest performer for April was US rail company Kansas City South up 10.7% as the two Canadian rail heavy weights (Canadian Pacific and Canadian National) target its assets with competing takeout offers on the table.
The weakest performer in April was Brazilian contract generator AES Brasil down 21.1%. This was partly timing, with a recovery on 1 May, and partly ahead of an anticipated weak Q1.
We continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as we continue to capitalize on the raft of opportunities currently on offer
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/apr-2021.pdfMarch, 2021
4D Infrastructure (4D) is a boutique asset manager investing in listed infrastructure companies across all four corners of the globe. Our investment objective is to identify quality infrastructure companies, trading at or below fair value with sustainable, growing earnings combined with sustainable, growing dividends. The 4D Global Infrastructure Fund (‘the Fund’) aims to outperform the OECD G7 Inflation Index + 5.5% p.a. over the medium to long term (before fees).
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/mar-2021.pdfFebruary, 2021
4D Infrastructure (4D) is a boutique asset manager investing in listed infrastructure companies across all four corners of the globe. Our investment objective is to identify quality infrastructure companies, trading at or below fair value with sustainable, growing earnings combined with sustainable, growing dividends. The 4D Global Infrastructure Fund (‘the Fund’) aims to outperform the OECD G7 Inflation Index + 5.5% p.a. over the medium to long term (before fees). The 4D Global Infrastructure Fund was down a net 1.27% (AUD) in February 2021, under-performing the benchmark’s return of 0.26% (by 1.53%) but out-performing the FTSE 50/50 Infrastructure Index, which was down 1.74% (AUD). Currency was again a significant detractor in February costing the fund 1.31%. The strongest performer for February was Mexican airport operator Grupo ASUR +21.4% as vaccines continue to roll out across the globe and the expectation of the resumption of air travel gets closer. The weakest performer in February was Portuguese based renewable operator EDPR down 19.7%. We believe this to be profit taking after a very strong run in pure play renewables where we ourselves reduced our position on valuation. We continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as we continue to capitalize on the raft of opportunities currently on offer.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/feb-2021.pdfJanuary, 2021
The 4D Global Infrastructure Fund was down a net 2.99% (AUD) in January 2021, under-performing the benchmark’s return of 0.49% (by 3.48%) and under-performing the FTSE 50/50 Infrastructure Index, which was down 1.32% (AUD). Currency continues to be a detractor in January. The strongest performer for January was Chinese port operator China Merchants Port Holdings Ltd up 14% as throughput numbers beat expectations, there are improving signs of demand recovery with the Company talking up the outlook for yields. The weakest performer in January was Spanish conglomerate Ferrovial down 12.4 % as restrictions imposed as a result of the second wave of COVID shut down economies and reduce movement across their infrastructure assets. The stock has been oversold and is positioned well to capitalize on the recovery phase. We continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as we continue to capitalize on the raft of opportunities currently on offer
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/jan-2021.pdfDecember, 2020
The 4D Global Infrastructure Fund was down a net 0.75% (AUD) in December 2020, under-performing the benchmark’s return of 0.47% (by 1.22%) but out-performing the FTSE 50/50 Infrastructure Index, which was down 3.2% (AUD). The currency impact was significant detracting 3.06% from otherwise positive performance. The strongest performer for December was pure play renewable operator EDP Renovaveis up 28.4% on the back of increased global stimulus focusing on the green energy transition.
The weakest performer in December was Canadian midstream operator Pembina Pipeline down 8.5% as the midstream sector remains out of favour as the global focus turns green. We continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as we continue to capitalize on the raft of opportunities currently on offer.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/dec-2020.pdfNovember, 2020
The 4D Global Infrastructure Fund was up a net 9.76% (AUD) in November, out-performing the benchmark’s return of 0.61% (by 9.15%) and the FTSE 50/50 Infrastructure Index, which was up 2.73% (AUD) in November. Currencies were mixed but ultimately detracted 2.56% from performance. The strongest performer for November was German airport group, Fraport up 52% in the month on the back of the vaccine news and hopes that planes will be back in the sky soon. Airports had been oversold during the worst of the COVID pandemic and 4D maintained core positions which contributed strongly to the November out-performance. The weakest performer in November was UK utility National Grid down 5.9%. This is due in part to regulatory overhang, and Brexit concerns as well as utilities in general being relatively weaker as investors looked for recovery stocks. We continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as we continue to capitalize on the raft of opportunities currently on offer.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/nov-2020.pdfOctober, 2020
The 4D Global Infrastructure Fund up a net 0.83% (AUD) in October, out-performing the benchmark’s return of 0.75% (by 0.08%) but under-performing the FTSE 50/50 Infrastructure Index, which was up 1.38% (AUD) in October. Currencies were mixed with the AUD/USD finishing at 70.28c, down 1.4%. The strongest performer for October was Chinese gas distributor ENN Energy Holdings up 16.1% for the month as volumes and growth outlook continue to positively surprise.
The weakest performer in October was Brazilian toll road operator Ecorodovias down 15.6% on no stock specific news. The stock has been oversold and this is a buying opportunity.
We continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as we continue to capitalize on the raft of opportunities currently on offer.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/oct-2020.pdfAugust, 2020
The 4D Global Infrastructure Fund was down a net 2.15% (AUD) in August, under-performing the benchmark’s return of 0.44% (by 2.59%) but out-performing the FTSE 50/50 Infrastructure Index, which was down 2.72% (AUD) in August. The A$ finished at 73.8c, up 3.3% detracting from reported net performance of the Fund. The strongest performer for August was German airport group Fraport up 16.4% as continental European travel recommences and there is some hope of passenger recovery. The weakest performer in August was Brazilian toll road operator Ecorodovias down 11% as COVID-19 continues to spike in Brazil putting pressure on the overall market. We continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as we will look to capitalize on the raft of opportunities currently on offer.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/4D-monthly-report-August-2020-RETAIL.pdfJuly, 2020
The 4D Global Infrastructure Fund was down a net 1.78% (AUD) in July, under-performing the benchmark’s return of 0.08% (by 1.86%) and under-performing the FTSE 50/50 Infrastructure Index, which was down 1.20% (AUD) in July. The A$ finished at 71.43c, up 3.5% detracting from reported net performance of the Fund. The strongest performer for July was US rail operator KSU up 15.1% on the back of solid Q2 reporting and on rumours of a private equity bid for the company. The weakest performer in July was US Utility First Energy down 25.2% on allegations of corporate corruption surrounding the use of a 501(c)4 structure for political lobbying. The Company is refuting all allegations and it does look like the market over reacted to headlines. We continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as we will look to capitalize on the raft of opportunities currently on offer.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/4D-monthly-report-July-2020-RETAIL.pdfJune, 2020
The 4D Global Infrastructure Fund was down a net 2.04% (AUD) in June, under-performing the benchmark’s return of 0.31% (by 2.35%) but out-performing the FTSE 50/50 Infrastructure Index, which was down 5.58% (AUD) in June. The A$ finished at 69.03c, up 3.5% detracting from reported net performance of the Fund. The strongest performer for June was Indonesian toll road operator, Jasa Marga up 24.4% as it rebounds from an oversold position as traffic starts to recover and the government pledges continued support for the growth of the sector, The weakest performer in June was German airport group, Fraport down 13.2% as flights remain grounded, COVID-19 continues to spread and expectations of a return to normal travel environments get further pushed out. We believe that the weak environment is more than priced in to the current share price. We continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as we will look to capitalize on the raft of opportunities currently on offer.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/4D-monthly-report-June-2020-RETAIL.pdfticker: BFL0019AU
commentary_block: Array
factsheet_url:
https://www.4dinfra.com/forms#4DGIF
under Performance reports bottom of the page
release_schedule: Monthly
fund_features:
The 4D Global Infrastructure Fund will be managed as a single portfolio of listed global infrastructure securities. Infrastructure is defined to include regulated utilities in gas, electricity and water; transport infrastructure such as airports, ports, road and rail; as well as communication assets such as the towers and satellite sectors. The Fund is intended to be truly global with exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered.
- The objective is to identify quality listed global infrastructure securities, trading at or below fair value with sustainable, growing earnings combined with sustainable, growing dividends.
- Typically holds 30-60 stocks and is suited to both income and growth investors.
- The investment process is designed to take advantage of the best opportunities available in the global market for listed infrastructure securities.
manager_contact_details: Array
asset_class: Property and Infrastructure
asset_category: Global Listed Infrastructure
peer_benchmark: Property - Global Listed Infrastructure Index
broad_market_index: Global Infrastructure Index
structure: Managed Fund
- Manager Address : Bennelong House 9 Queen Street Melb VIC 3000
- Phone : 1800 895 388 (Australia) | 0800 442 304 (New Zealand)
- Website : https://www.4dinfra.com/
- Contact Email : client.experience@bennelongfunds.com
- Contact Page : https://www.4dinfra.com/contact