September, 2023
The Fund returned -4.77% (after fees), underperforming the benchmark which returned -4.42%.
• 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.
Key Contributors to Outperformance
• Grupo Aeroportuario Pac-ADR and Grupo Aeroportuario Sur-ADR – The Mexican airports underperformed due to press reports that the companies may be forced to absorb the US$4.2bn in debt linked to the construction of the New Mexico City Airport (Mexico City Airport Trust) in exchange for concession life extensions. The fund was underweight these stocks.
• Aleatica SAB de CV – During the month, IFM Investors announced it is investing a further MX$8.8bn (€473m) to buy the remaining 13.96% shares it does not already own in Mexican transportation company Aleatica. The manager’s IFM Global Infrastructure Fund (IFM GIF) has made a voluntary tender offer to acquire the remaining shares of Aleatica, increasing its ownership to 99.94%, and plans to delist Aleatica from the Mexican Stock Exchange. Aleatica owns a portfolio of 7 toll roads and 1 airport and holds transportation infrastructure concessions in the metropolitan area of Mexico City.
Key detractors from Outperformance
• Duke Energy Corp - The stock underperformed in line with the US Utilities sector which was lower due to the rising bond yields. The fund was underweight this stock.
• China Merchants Port Holding - The stock outperformed post its interim results announcement. The fund held an underweight position.
• Auckland Intl Airport Ltd - The Stock performed well post its FY23 announcement. The fund held an underweight position in the stock.
August, 2023
The Fund returned -1.32% (after fees), underperforming the benchmark which returned -0.90%.
• 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 -0.01% (after fees), underperforming the benchmark which returned 0.73%.
• 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 -0.26% (after fees), outperforming the benchmark which returned 0.07%.
• 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- 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 -3.99% (after fees), underperforming the benchmark which returned -3.68%.
• 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.
April, 2023
The Fund returned 4.83% (after fees), outperforming the benchmark which returned 3.95%.
• 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 1.28% (after fees), outperforming the benchmark which returned 0.92%.
• 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.
November, 2022
• The Fund returned 4.41% (after fees), outperforming the benchmark which returned 3.12%.
• 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. During a month of positive performance in global equities and positive performance in listed infrastructure, the strategy outperformed the benchmark.
October, 2022
The Fund returned 8.84% (after fees), outperforming the benchmark which returned 5.59%.
• 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.
September, 2022
The Fund returned -5.43% (after fees), outperforming the benchmark which returned -6.00%.
• The major contributor to the strategy's return was the Rail/Other transportation sector.
• The detractors from the strategy's return were the Electric Utilities, Energy Infrastructure and Toll roads.
• Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included West Japan Railway and East Japan Railway and Aleatica.
• Japan Airport terminal, Severn Trent and Atlantia were among the significant detractors.
• Relative to the S&P Global Infrastructure Index, the major positive contributors were positions in the Rail, Electricity and Gas Distribution and Energy Infrastructure
• Positions in the Water, Electric Utilities and Electricity transmission detracted.
During a month of negative performance in global equities and negative performance in listed infrastructure, the strategy outperformed the benchmark.
The outperformance was driven mostly by positive security selection. The strongest sectors were Rail, Electricity and Gas Distribution and Energy Infrastructure. The weakest were Water, Electric Utility and Electricity Transmission. In Rail, the Japanese rails companies, East Japan Railway and West Japan Railway both outperformed as the market was encouraged by loosening of restrictions around foreign visitors. In Electricity and Gas Distribution, Sempra Energy outperformed as the market continued to be encouraged by their attractive business mix and potential for LNG expansion. In Energy Infrastructure, our generally lower beta exposure was rewarded.
In the Water sector, both of our holdings (Severn Trent in the UK and Essential Utilities in the US) pulled back on concerns around higher interest rates. Likewise in Electric Utilities, where National Grid was a laggard and in Electricity Transmission, where Terna lagged as well.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/191996772.pdfAugust, 2022
The Fund returned -0.41% (after fees), underperforming the benchmark which returned 0.18%. 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/2021/02/191241320.pdfJuly, 2022
The Fund returned 3.12% (after fees), outperforming the benchmark which returned 2.43%. 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/2021/02/189766681.pdfMay, 2022
The Fund returned 1.53% (after fees), underperforming the benchmark which returned 2.61%. 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/2021/02/188593221-1.pdfApril, 2022
The Fund returned 1.80% (after fees), underperforming the benchmark which returned 2.17%. 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 were detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/187152896.pdfFebruary, 2022
The Fund returned -0.65% (after fees), underperforming the benchmark which returned -0.54%. 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 Electricity Utilities, Water 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 Southern Co, Duke Energy and Enel spa. PPL Corp, Aleatica and Menzies PLC 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 Utilities and Electricity Generation sectors. Positions in the Toll Roads, Airports and Energy Infrastructure sectors detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/185019009.pdfJanuary, 2022
The Fund returned 2.69% (after fees), outperforming the benchmark which returned 2.11%. 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/2021/02/183937006.pdfDecember, 2021
The Fund returned 3.92% (after fees), performing in line with the benchmark which returned 3.92%. 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.
Key Contributors to Outperformance
Sempra Energy, a North American utility holding company, performed strongly amidst an overall recovery in US utility share prices along with the positive news of a further selldown in their Sempra Infrastructure Partners subsidiary, where their Mexican and LNG assets are held. Sempra remains one of our largest holdings. 2. Williams, a North American energy infrastructure company, lagged the sector amidst broad underperformance of the energy infrastructure sector after that group’s extended rally led to high valuations. 3. Atmos Energy, a US gas LDC (Local Distribution Company), rose as the market appreciated its stable and growing earnings profile driven by continued investment in its natural gas distribution business.
Key Contributors to Underperformance
GAP, a Mexican airport operator, rose as the company continued to post strong passenger numbers amidst the ongoing mobility recovery around the world. The fund held an underweight position in the stock
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/182666779.pdfNovember, 2021
The Fund returned 1.18% (after fees), outperforming the benchmark which returned 0.21%. 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/2021/02/181818855.pdfSeptember, 2021
The Fund returned -1.09% (after fees), underperforming the benchmark which returned -0.19%.
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.
Key Contributors to Outperformance
1. Enel (not held) underperformed after rising primary energy costs in Europe drive concerns regarding increased regulatory intervention to cap the impact on customers of electricity and gas utilities.
2. ENAV, alongside other European airports performed strongly as sentiment improved regarding the re-opening of economies and travel routes. The announcement of a re-opening of Trans-Atlantic travel between the United States and Europe was a key contributing factor.
3. Duke Energy (not held) US utilities underperformed as investors sought greater exposures to stocks with leverage to the ongoing economic recovery.
Key Contributors to Underperformance 1. American Electric Power US utilities underperformed as investors sought greater exposures to stocks with leverage to the ongoing economic recovery.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/180208598.pdfAugust, 2021
The Fund returned 1.49% (after fees), outperforming the benchmark which returned 2.33%. 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.
Key Contributors to Outperformance
1. SSE PLC -SSE outperformed as an activist investor was reported to have built a significant stake in the company. The potential for SSE to be a target for corporate activity reflects the attractive combination of regulated energy network assets and portfolio of renewable assets in operation and under construction.
2. Pembina Pipeline Corp-Pembina Pipeline (not held) underperformed after it failed to secure backing for a partnership with another midstream pipeline company, Inter Pipeline Limited.
3. Enel SPA-Italian electric utility Enel (not held) underperformed as it announced a deal to acquire a portfolio of hydro assets in Italy. The management team indicated an expectation of further growth through acquisitions. Key Contributors to Underperformance
1. ENAV SPA-ENAV, and the broader European Airport sector was a little weaker over August as the recovery in passenger volumes into the winter season was considered by investors in the context of ongoing delta strain infections
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/178792971.pdfJuly, 2021
The Fund returned 3.93% (after fees), outperforming the benchmark which returned 3.07%. 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.
Key Contributors to Outperformance
1. Sydney Airport rose sharply after receiving an indication of interest from a consortium led by IFM to take the company private at A$8.25 per share, a premium of around 40% from its last trading price. Sydney Airport’s fundamentals are mixed, with domestic travel recovering nicely while international travel is still highly curtailed. At the moment the company and the bidding consortium are each positioning themselves to attempt to negotiate their own respective best outcomes.
2. Severn Trent, a regulated UK water utility, reported full year results in late May. The company is 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, also 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
Key Contributors to Underperformance
Japanese Rail Companies, East Japan Railway and West Japan Railway both retreated after their very strong performance in prior months as investors became concerned again around rising Covid case numbers. We remain confident in the outlook given rising vaccination rates across Japan. recovery.” Investments will be made in the areas of river quality, flood resilience, storm overflows, decarbonising and fixing of pipes
June, 2021
The Fund returned 1.06% (after fees), underperforming the benchmark which returned 1.25%.
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/2021/02/174431811.pdfMay, 2021
The Fund returned 0.87% (after fees), outperforming the benchmark which returned 0.26%. 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/2021/02/173147080.pdfJanuary, 2021
The Fund returned -1.57% (after fees), outperforming the benchmark which returned -1.60%. The major contributors to the strategy's return were the Pipelines and Water sectors. The major detractors from the strategy's return were the Airports and Toll Roads sector. Relative to the S&P Global Infrastructure Index and in local currency terms, major stock contributors to the Fund’s return included Cheniere Energy Inc, Getlink and United Utilities Signature Aviation Plc, Aleatica and Sydney Airport 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 Airport sectors. Positions in the Toll Roads, Electric Utilities and Seaports detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/165686843.pdfasset_class: Property and Infrastructure
asset_category: Global Listed Infrastructure
peer_benchmark: Property - Global Listed Infrastructure Index
broad_market_index: Global Infrastructure Index
manager_contact_details: Array
ticker: MAQ0825AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
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Provider’s own factsheet
fund_features:
Macquarie International Infrastructure Securities Unhedged aims to outperform the S&P Global Infrastructure Index (Net Total Return in $A) (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 infrastructure securities which are listed, 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 Fund may also provide exposure to hybrid or debt securities issued by infrastructure entities. Exposure to securities issued by vehicles controlled or managed by the Macquarie Group is limited to 5% of the net asset value of the Fund at the time of investment.
structure: Managed Fund