September, 2023
The Fund returned -3.96% (after fees), outperforming the benchmark which returned -4.14%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributor to the strategy’s return was Rail / Other Transportation.
• The major detractors to the strategy’s return were Electric Utility, Energy Infrastructure and Airports.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Grupo Aeroportuario Pac-ADR, Aleatica SAB de CV and Grupo Aeroportuario Sur-ADR.
• Duke Energy Corp, China Merchants Port Holding and Auckland Intl Airport Ltd were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Airports, Toll Roads and Rail / Other Transportation.
• Positions in Electric Utility, Energy Infrastructure and Seaports detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/205859775.pdfAugust, 2023
The Fund returned -4.24% (after fees), underperforming the benchmark which returned -3.74%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributors to the strategy’s return were Energy Infrastructure, Toll Roads and Rail / Other Transportation.
• The major detractors to the strategy’s return were Electric Utility, Water and Electricity Generation.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Aleatica SAB de CV, Shenzhen Intl Holdings and Grupo Aeroportuario DEL CENT.
• Orsted A/S, Japan Airport Terminal Co and PPL Corp were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Toll Roads, Electricity and Gas Distribution and Electricity Transmission.
• Positions in Electric Utility, Water and Electricity Generation detracted.
Key Contributors to Outperformance
• Aleatica SAB de CV - voluntary tender offer was announced at the end of August to take private 100% of Aleática’s public shares.
• Shenzhen Intl Holdings - stock underperformed due to general negative macro sentiment in China. The fund has an underweight position.
• Grupo Aeroportuario DEL CENT - a Mexican airport operator, rose on continued strength in Mexican passenger volumes.
Key detractors from Outperformance
• Orsted A/S - underperformed during the month as it announced likely write-downs of assets in the United States amounting to DKK16bn or c7% of market capitalisation. Orsted is facing challenges from the availability and cost of construction services to ensure the timely buildout of the pipeline of offshore wind projects in the US.
• Japan Airport Terminal Co - the stock performed well due to positive market sentiment regarding tourist activity Japan. The fund has an underweight position.
• PPL Corp - the stock underperformed in line with the US Utilities sector as US long bond yields reached levels not seen since 2007.
July, 2023
The Fund returned 0.37% (after fees), underperforming the benchmark which returned 1.33%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributors to the strategy’s return were Water, Toll Roads and Electric Utility.
• The major detractors to the strategy’s return were Electricity Generation, Airports and Energy Infrastructure.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included ADP, Ameren Corporation and CLP Holdings Ltd.
• Grupo Aeroportuario PAC-ADR, SSE PLC and Williams Cos Inc were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Seaports, Water and Electric Utility.
• Positions in Energy Infrastructure, Airports and Toll Roads detracted.
Key Contributors to Outperformance
• ADP - a French airport operator, fell on concerns around potential new French taxes on air travel and general concerns around future economic activity.
• Ameren - a US utility, performed well ahead of reporting its quarterly results on August 3rd.
• CLP - a Hong Kong utility, rose as the company is reported to be exploring options for its Australian subsidiary.
Key Detractors from Outperformance
• Grupo Aeroportuario del Pacifico - a Mexican airport operator, rose on continued strength in Mexican passenger volumes.
• SSE - a Scottish utility, fell on concerns around higher long-term UK interest rates and pressures in the UK offshore wind industry.
• Williams - a US midstream operator, rose after a prior period pullback and amidst a rebounding commodity price environment.
June, 2023
The Fund returned 1.02% (after fees), underperforming the benchmark which returned 1.77%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributors to the strategy’s return were Energy Infrastructure, Electricity Generation and Electricity Transmission.
• The major detractors to the strategy’s return were Water, Electric Utility and Communications Infrastructure.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included ADP, CLP Holdings Ltd and Getlink SE.
• Williams Cos Inc, Severn Trent PLC and Targa Resources Corp were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Airports, Rail / Other Transportation and Toll Roads.
• Positions in Energy Infrastructure, Water and Electric Utility detracted.
Key Contributors to Outperformance
• ADP- the operator of French airports CDG and Orly, pulled back after its strong previous run on concerns of the sustainability of recent strong traffic growth and potential government actions around French concessions.
• CLP Holdings- a Hong Kong based utility, rose as news reports suggested the company could be considering options for its Energy Australia subsidiary.
• Getlink- the owner and operator of the Channel Tunnel, fell after prior strong performance on no notable news.
Key detractors from Outperformance
• Williams- the a US midstream company, rose as natural gas prices recovered and the market was optimistic the company would use some its free cash flow to engage in share buybacks.
• Severn Trent- a UK water company, fell on concerns around negative news reports about Thames Water, an unlisted UK water company held by a consortium of private investors.
• Targa Resources Corp- a US midstream company, bounced back after recent weakness on no notable news
May, 2023
The Fund returned -5.17% (after fees), underperforming the benchmark which returned -4.73%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributors to the strategy’s return were Rail / Other Transportation and Electricity Generation.
• The major detractors to the strategy’s return were Electric Utility, Energy Infrastructure and Airports.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included SSE PLC, Dominion Energy Inc and Duke Energy Corp.
• Grupo Aeroportuario PAC-ADR, Flughafen Zurich AG-REG and Equitrans Midstream Corp were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Rail / Other Transportation, Electricity Transmission and Electric Utility.
• Positions in Airports, Water and Seaports detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/201435042.pdfApril, 2023
The Fund returned 3.21% (after fees), outperforming the benchmark which returned 2.43%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributors to the strategy’s return were Electric Utility, Airports and Energy Infrastructure
• There were no detractors during the month.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Grupo Aeroportuario Pac-ADR, ENAV SpA and Grupo Aeroportuario Sur-ADR.
• Getlink SE, Aleatica SAB de CV and ADP were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Airports, Seaports and Communications Infrastructure
• Positions in Electric Utility, Toll Roads and Rail / Other Transportation detracted.
February, 2023
The Fund returned -1.73% (after fees), outperforming the benchmark which returned -2.21%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributors to the strategy’s return were Airports, Toll Roads and Seaports.
• The major detractors to the strategy’s return were Rail/Other Transportation, Energy Infrastructure and Electricity and Gas Distribution.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Dominion Energy Iinc, Aleatica SAB de CV and Duke Energy Corp.
• Grupo Aeroportuario del Pacifico, PPL Corp and Grupo Aeroportuario del Sureste were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Toll Roads, Electricity and Gas Distribution and Seaports.
• Positions in Airports, Rail/Other Transportation and Communications Infrastructure detracted.
Key contributors to performance
• Dominion Energy Inc: After a period of strong stability and constructive regulation for Dominion in Virginia, a change in high-level government officials led to uncertainty of Dominion’s regulatory construct during 4Q 2022. Uncertainty increased during February 2023, as legislative activity skewed negative during the month.
• Aleatica SAB de CV: The company performed well after it reported FY result that beat market expectations. In addition, during the month IFM submitted its formal takeover proposal to the company and is awaiting regulatory approval.
• Duke Energy Corp: Along with impacts from higher US long-bond yields, Duke was negatively impacted by a write-down and delayed sale of the company’s unregulated renewable assets.
Key detractors from performance
• Grupo Aeroportuario del Pacifico: performed well after it reported that for January 2023, passenger numbers at its 12 Mexican airports increased by 30.0% compared to January 2022.The fund did not hold a position in the stock.
• Grupo Aeroportuario del Sureste: performed well after it reported that for January 2023, passenger traffic across its airports in Mexico, Puerto Rico and Colombia reached a total of 6.3 million passengers, which is 29.8% above the levels reported in January 2022. The fund did not hold a position in the stock.
• PPL Corp: the stock underperformed amidst general weakness in US utility stock prices as expectations for more and longer US central bank tightening led to higher US long-bond yields.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/198014216.pdfDecember, 2022
The Fund returned -3.37% (after fees), outperforming the benchmark which returned -3.41%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributors to the strategy's return were Rail/Other Transportation, Electricity Generation and Seaports
• There major detractors to the strategy’s return were Energy Infrastructure, Toll Roads and Airports during the month.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included ADP, Grupo Aeroportuario PAC-ADR and CLP Holdings Ltd.
• Southern Company, Duke Energy Corp and Japan Airport Terminal Co were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Airports, Electricity Generation and Energy Infrastructure.
• Positions in the Electric and Gas Distribution, Seaports and Electricity Transmission detracted.
Key contributors to performance
• ADP, an operator of French airports, fell during the month on concerns of economic slowdowns in 2023 and concerns that air travel would be pressured. It added alpha as it is in the benchmark but not held.
• Grupo Aeroportuario PAC-ADR, an operator of Mexican airports, fell during the month on concerns of economic slowdowns in 2023 and concerns that air travel would be pressured. It added alpha as it is in the benchmark but not held.
• SSE PLC, an operator of electricity transmission and renewable energy production, rose slightly as the market appreciated its attractive collection of assets and reasonable valuation
Key detractors from performance
• Southern Company, a US utility, rose as the market focused on moderating long-term bond yields in the US, continued progress on the company’s new generation facilities and a desire to gain exposure to less economically exposed companies amidst fears of a 2023 recession.
• Duke Energy, a US utility, rose as the market focused on moderating long-term bond yields in the US and a desire to gain exposure to less economically exposed companies amidst fears of a 2023 recession.
• Japan Airport Terminal, an operator of Japanese airport assets, rose on continued easing of Japan’s covid-era policies.
November, 2022
The Fund returned 6.68% (after fees), outperforming the benchmark which returned 5.89%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributors to the strategy's return were Electric Utility, Toll Roads and Airports
• There major detractors to the strategy’s return were Energy Infrastructure, Rail/Other Transportation and Electric Generation during the month.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Dominion Energy Inc, Vopak and Atlantia SPA.
• East Japan Railway Co, West Japan Railway Co and COSCO Shipping Ports Ltd were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Electricity and Gas Distribution, Electric Utility and Water.
• Positions in the Rail/Other Transportation, Energy Infrastructure and Toll Roads detracted.
Key Contributors to Outperformance
• Dominion Energy Inc, underperformed as during Dominion’s 3Q earnings call, management announced plans for a strategic review, to address balance sheet, customer rates and earnings quality. The review could result in material earnings dilution and likely signals a worsening of their regulatory environment in Virginia, which had previously been considered one of the strongest in the country. The fund doesn’t hold a position in the stock.
Key detractors from Outperformance
• East Japan Railway Co, underperformed as the company reported 2QFY23 results with operating income slightly missing market expectations due to the pick-up in COVID cases in Japan during the quarter.
October, 2022
The Fund returned 8.33% (after fees), outperforming the benchmark which returned 4.77%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
• The major contributors to the strategy's return were Energy Infrastructure, Toll Roads and Airports
• There were no detractors during the month.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Aleatica, Archaea and Grupo Aeroportuario Del Centro Norte
• Grupo Aeroportuario Sur-ADR and Grupo Aeroportuario Pac-ADR and CLP Holdings were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Toll Roads, Energy Infrastructure and Seaports sectors.
• Positions in the Airports, Electric Utilities and Electricity Generation detracted
During a month of positive performance in global equities and positive performance in listed infrastructure, the strategy outperformed the benchmark.
Key Contributors to Outperformance
• Aleatica, a Mexican toll road company, rose sharply after its majority holder IFM announced its intention to acquire the remaining listed shares at a material premium.
• Archaea, a leader in the production of land fill gas in the US, rose after BP announced its intention to acquire the company at material premium.
• Grupo Aeroportuario Del Centro Norte, a Mexican airport company, rose notably on a continued traffic recovery and relatively attractive valuation compared to its peers.
Key detractors from Outperformance
• Grupo Aeroportuario Sur-ADR, a Mexican airport company, rose on continued traffic recovery.
• Grupo Aeroportuario Pac-ADR, a Mexican airport company, rose on continued traffic recovery.
• CLP Holdings, a Hong Kong utility, fell on the back of rising interest rates which make its fixed return construct relatively less attractive.
August, 2022
The Fund returned -0.88% (after fees), underperforming the benchmark which returned -0.62%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were Rail/Other Transportation Energy Infrastructure and Seaports. The detractors from the strategy's return were the Water, Electric Utilities and Electricity Generation sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Archaea Energy, West Japan Railway, Getlink. Grupo Aeroportuario Sur, SSE and Japan Airport terminal were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Rail/Other transportation, Energy infrastructure and Seaports. Positions in the Airports, Communications Infrastructure and Water detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/191193811.pdfJuly, 2022
The Fund returned 4.83% (after fees), outperforming the benchmark which returned 4.26%. The major contributors to the strategy's return were Electric Utilities, Energy Infrastructure and Water. The detractors from the strategy's return were the Seaports, Electricity Transmission and Airports. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included SSE, Vinci, and Cellnex Telecom. Getlink, West Japan Railway and East Japan Railway were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Airports, Toll Roads and Water sectors. Positions in the Seaports, Electricity Transmission and Airports detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/189766688.pdfJune, 2022
The Fund returned -6.00% (after fees), outperforming the benchmark which returned -6.64%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were Toll Roads, Rail/ Other transportation, and Electricity Transmission. The detractors from the strategy's return were the Energy Infrastructure, Airports and Electric Utilities. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included East Japan Railway, Williams, and West Japan Railway. Archaea Energy, CLP Holdings and Japan Airport Terminal were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Rail/ Other transportation, Energy infrastructure and Electricity Transmission. Positions in the Toll Roads, Electricity and Gas Distribution and Airports detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/188914522.pdfMay, 2022
The Fund returned 1.58% (after fees), underperforming the benchmark which returned 2.93%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were Electric Utilities, Energy infrastructure and the Airports sector. The detractors from the strategy's return were the Water, Rail/Other Infrastructure and Communications sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Auckland International Airport, Gibson Energy and PPL Corp. Severn Trent, SSE and Archaea Energy were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Airports, Electricity and Gas distribution and Electricity Generation sectors. Positions in the Electric Utilities, Toll Roads and Water sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/188153182.pdfApril, 2022
The Fund returned -0.77% (after fees), outperforming the benchmark which returned -1.05%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were Electric Utilities, Energy infrastructure and the Toll roads sector. The detractors from the strategy's return were the Airports, Rail and seaports sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included SSE, NextEra Energy and Vinci. Atlantia, Getlink and Aleatica were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Electric Utilities, Airports and Water sectors. Positions in the Rail/ Other Transportation, Toll Roads and Electricity and Gas Distribution sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/187152886.pdfJanuary, 2022
The Fund returned 0.51% (after fees), outperforming the benchmark which returned -0.14%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return. The major contributors to the strategy's return were Energy infrastructure, Electricity and Gas Distribution and the Airports sector. The major detractors from the strategy's return were the Toll Roads, Electricity Utilities, and the Rail/ Other transportation sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included TC Energy, NextEra Energy and Sempra Energy. Williams, East Japan Railway and Targa were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Electricity and Gas Distribution, Electricity Generation and Toll Road sectors. Positions in the Energy Infrastructure, Communications and Rail/Other transportation sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/184271728.pdfDecember, 2021
The Fund returned 5.58% (after fees), underperforming the benchmark which returned 5.69%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were the Electric Utility, Airports and Electricity and Gas Distribution sectors. sectors. The only major detractor from the strategy's return was the Seaports sector. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Sempra Energy, Williams, and Atmos Energy. GAP, TC Energy and Southern Co were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Electricity and Gas Distribution, Other Infrastructure and Energy Infrastructure sectors. Positions in the Rail/Other Transportation and Seaports sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/182667060.pdfNovember, 2021
The Fund returned -2.33% (after fees), outperforming the benchmark which returned -3.75%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return. The major contributors to the strategy's return were the Water and Electricity Transmission sectors. The major detractors from the strategy's return were the Energy Infrastructure, Airports and Electricity and Gas Distribution sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included National Grid, Severn Trent and Aleatica. TC Energy, Vinci and Sempra Energy were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Airports, Water and Electricity Transmission Sectors. Positions in the Rail/Other Transportation and Toll Roads sector detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/181815801.pdfOctober, 2021
The Fund returned 1.55% (after fees), underperforming the benchmark which returned 3.17%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/181062360.pdfSeptember, 2021
The Fund returned -1.36% (after fees), underperforming the benchmark which returned -0.63%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were the Airports, Energy Infrastructure and Rail/Other transportation sectors. The major detractors from the strategy's return were the Electric Utilities, Electricity and Gas Distribution and Water sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Enel SPA, ENAV and Duke Energy. American Electric Power, OneOK and Terna were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Electric Utility, Electricity Generation and Rail/Other Transportation sectors. Positions in the Energy Infrastructure, Airports and Electricity Transmission sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/179968321.pdfAugust, 2021
The Fund returned 1.34% (after fees), outperforming the benchmark which returned 2.09%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were the Electric Utilities, Toll Roads and Rail/Other transportation sectors. The major detractors from the strategy's return were the Energy Infrastructure, Airports and Water sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included SSE PLC, Pembina Pipelines and Enel SPA. ENAV, China Merchants and NextEra Energy were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Rail/Other transportation and Toll Road sectors. Positions in the Electric Utilities, Water and Electricity and Gas Distribution sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/178792972.pdfJuly, 2021
The Fund returned 2.14% (after fees), outperforming the benchmark which returned 1.22%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were the Airports and Electric Utilities sectors. The major detractors from the strategy's return were the Electricity Generation and Diversified Infrastructure sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Sydney Airport, Severn Trent, and Williams Companies. East Japan Railway, Duke Energy and West Japan Railway were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Airports and Water sectors. Positions in the Rail/Other transportation, Electric Utilities and Electricity and Gas Distribution sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/175738513.pdfJune, 2021
The Fund returned -0.13% (after fees), outperforming the benchmark which returned -0.22%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were the Energy Infrastructure and Electricity Transmission sectors. The major detractors from the strategy's return were the Electric Utilities and Airport sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Xcel energy, Enel and Terna. Zhejiang Expressway, Sempra and ENAV were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Electric Utilities, Rail/Other transportation, and Seaports. Positions in the Energy Infrastructure, Airports and Diversified Infrastructure sectors detracted.
Key Contributors to Outperformance 1. East Japan Railway performed relatively well during June as vaccination rates improved in Japan and investors turned their attention towards a gradual reopening of the economy. 2. Terna, the Italian electricity transmission network owner and operator outperformed as it outlined future areas of capital investment. The company expects to invest EUR18bn over the next 10 years. Drivers of investment include transmission lines connecting renewable generation to industrial users and undersea electricity transmission cables connecting mainland Italy with Sicily, Corsica and Sardinia. 3. Severn Trent, a regulated UK Water utility reported full year results in late May. UK Water Companies are performing well regarding their operating and financing efficiency targets for the first year of the five-year regulatory agreement through 2025. The UK water regulator, OFWAT, handed down an initial determination regarding additional capital investment the sector may undertake in the current regulatory period. Listed UK water companies will be able to spend an additional £700m to fund the green economic recovery. Investments will be made in the areas of river quality, flood resilience, storm overflows, decarbonising and fixing of pipes.
Key Contributors to Underperformance 1. ENAV - Air traffic control company ENAV received a balanced draft determination for tariff development through 2024. Slightly greater than expected efficiency targets imply a lower tariff profile in the near term. This is expected to be balanced by a recovery in the latter years of the regulatory period. 2. Sempra Energy performed inline with the US utilities sector over the month. The company updated investors at an analyst day held late in the month, highlighting the company’s multiple platforms for growth in network assets including 7%-10% compound growth rates in California and Texas assets over five years, and long term take or pay contracts in the energy infrastructure segment.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/174431813.pdfMay, 2021
The Fund returned 0.16% (after fees), outperforming the benchmark which returned -0.29%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were the Pipelines and Electricity Transmission sectors. The major detractors from the strategy's return were the Electric Utilities and Airport sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Cheniere Energy, NextEra Energy and ENAV. American Electric Power, APA group and Sydney Airport were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Electric Utilities, Water and Rail/Other Transportation sectors. Positions in the Airports, Toll Roads and Pipeline sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/173147094.pdfApril, 2021
The Fund returned 2.97% (after fees), outperforming the benchmark which returned 2.33 %. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were the Pipelines and Electric Utilities sectors. The major detractors from the strategy's return were the Rail and Other Transportation and Airport sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Japan Airport Terminal, Orsted and Enel. ENAV, Aleatica and Terna were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Water, Pipelines and Electricity Generation sectors. Positions in the Rail and Other Transportation, Electricity Transmission and Seaports sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/171484483.pdfMarch, 2021
The Fund returned 6.53% (after fees), outperforming the benchmark which returned 5.58%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return. The major contributors to the strategy's return were the Pipelines and Electric Utilities sectors. The major detractors from the strategy's return were the Rail and Other Transportation and Communications Infrastructure sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Sempra Energy, American Electric Power and Atmos Energy West Japan Railway, Vinci and East Japan Railway were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Electricity and Gas Distribution and Airport sectors. Positions in the Electric Utilities, Communication infrastructure and Toll Roads detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/170122510.pdfFebruary, 2021
The Fund returned 0.52% (after fees), outperforming the benchmark which returned 0.48%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return. The major contributors to the strategy's return were the Airports and Toll Roads sectors. The major detractors from the strategy's return were the Seaports and Diversified Infrastructure sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included ENAV, West Japan Railway and Vinci. Sempra Energy, United Utilities and American Electric Power were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Rail and Other Transportation, and Electric Utilities sectors. Positions in the Water, Pipelines and Electricity and Gas Distribution sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/167980607.pdfDecember, 2020
The Fund returned 0.43% (after fees), underperforming the benchmark which returned 1.44%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return. The major contributors to the strategy's return were Rail and Other Transportation, and Electric Utility sectors. The major detractors from the strategy's return were the Pipelines, and Electricity and Gas Distribution sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Aleatica Sab, Cheniere Energy Inc, and West Japan Railway Co. Signature Aviation Plc, Vinci SA, and TC Energy Corp were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Rail and Other Transportation, and Toll Roads sectors. Positions in the Airports, and Electricity and Gas Distribution sectors detracted
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/163440417-1.pdfNovember, 2020
Global equities rallied strongly in November as the conclusion of the Presidential elections in the US and the positive vaccine news boosted sentiment. The efficacy of the vaccine trials in particular resulted in a broadening of the market’s rally, with sectors most acutely hit by COVID-19 enjoying some relief.
• Asian small caps performed in line with this global rally to outperform their large cap peers. The increased scrutiny on internet giants in China, including the last minute cancelation of the Ant Financial IPO (set to be the largest in history at close to US$40bn), has made the market reassess the implications of regulation on China’s large internet companies.
• The recovery environment remains supportive for Asian small caps and November’s strong rally puts them ahead of the all-cap benchmark on a calendar year return basis. November also delivered 2020’s second month of +10% returns (in USD) for Asian small caps, the last year this occurred was during the recovery from the GFC in 2009.
• The Fund benefitted from the rally to post strong absolute returns, with performance delivered from Indian Financials and our selective positioning in the memory value chain. Both are areas we have viewed as substantially undervalued since the market’s lows in March.
• The drags on performance were mostly relative with no clear individual or collective stock positioning hampering performance. Our style generally steers us away from the most cyclical parts of the market and this relative underweight was the main culprit for the underperformance in this month’s strong rally.
• Looking forward, we remain comfortable in our positioning and expect that as global investors increasingly look to Asia they will be seeking out the type of higher quality and attractively priced growth opportunities which our portfolios aim to capture.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/162268683-1.pdfOctober, 2020
The Fund returned -0.54% (after fees), outperforming the benchmark which returned -0.75%. As the Fund’s foreign currency exposure is hedged, Australian dollar movements do not materially affect its return.
The major contributors to the strategy's return were the Electric Utility and Electricity And Gas Distribution sectors. The major detractors from the strategy's return were the Airports and Pipelines sectors. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included American Electric Power Co Inc, Sempra Energy, and Enel SpA. East Japan Railway Co, Exelon Corp, and Orsted A/S were among the significant detractors. Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Electricity And Gas Distribution and Electric Utility sectors. Positions in the Rail / Other Transportation and Airports sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/160156662.pdfticker: MAQ0432AU
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release_schedule: Monthly
fund_features:
Macquarie International Infrastructure Securities Fund aims to outperform the S&P Global Infrastructure Index (Net Total Return $A Hedged) (Benchmark) over the medium to long term (before fees). It aims to provide a return comprising both income and capital growth. The Fund provides exposure to a diversified portfolio of global listed infrastructure securities, or expected to be listed, and are issued by entities that have as their primary focus (in terms of income and/ or assets) the management, ownership and/or operation of infrastructure and utilities assets.
- The portfolio typically holds about 40-50 stocks; though this is designed to limit the impact of any single holding, results have not managed to stand out for any meaningful length of time.
- May have exposure to derivatives.
- Seeks to hedge any currency exposure back to Australian dollars.
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