September, 2023
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-September-2023-MIFU45199-1.pdfJune, 2023
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-June-2023-MIFU45107.pdfMarch, 2023
The portfolio recorded a positive return in the March quarter as inflation and 10-year bond rates pulled back on recession concerns. The stocks that contributed the most were Spanish airport operator Aena, French toll road and airport group Vinci and Australian toll road company Transurban. Aena jumped as its traffic levels exceeded 2019 levels and as 2022 earnings and 2023 guidance exceeded consensus. Vinci’s share price lifted as earnings came in ahead of consensus and as airport passenger traffic continued to rebound across its portfolio. Transurban rose as its second quarter traffic in two of its key markets, Sydney and Brisbane, exceeded 2019 levels.
The stocks that detracted the most were the investments in US rail company Norfolk Southern, US utilities Dominion Energy and Eversource Energy. Norfolk Southern fell on increased social licence risk after a train derailment made international news. Dominion fell as they failed to provide any further detail on their restructuring plans at their annual results presentation (despite the result being in line). Eversource fell as its JV partner for its offshore Sunrise wind project took an impairment and as the New England regulator launched an investigation into bill increases.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-INFRA-Retail-Factsheet-March-2023-INFRA45016.pdfDecember, 2022
The portfolio recorded a positive return in the December quarter as inflation and 10-year bond rates pulled back from September highs. The stocks that contributed the most were French toll road and airport operator Vinci, US rail company Norfolk Southern and UK water utility United Utilities. Vinci rose as traffic on its roads and at its airports exceeded expectations. Norfolk Southern advanced as Congress intervened in a long-running labour dispute to force a settlement on the unions that were holding out. United Utilities lifted as the draft methodology for the next regulatory period was well received and UK bond rates fell.
The stocks that detracted the most were the investments in US utility Dominion Energy, and US tower companies Crown Castle and American Tower. Dominion Energy fell as the management team announced a strategic review of the business that could lead to changes to earnings guidance. Crown Castle and American Tower lagged as interest rates and inflation remained elevated.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-December-2022-MIFU44926.pdfSeptember, 2022
The portfolio recorded a negative return in the September quarter when higher interest rates reduced the allure of safer equities. The stocks that detracted the most were the investments in Transurban and Atlas Arteria of Australia and Dominion Energy. Transurban declined after its full-year fiscal 2022 result and distribution target for fiscal 2023 (of 53 Australian cents per unit; +30% approximately) disappointed. Atlas Arteria, which operates four toll roads across France, Germany and the US, declined after a capital raising for the acquisition of the Chicago Skyway, a US toll road. Dominion Energy fell following a poor outcome in the final regulatory order for a large offshore wind project in Virginia. The company is appealing this decision. The only stock that contributed was Atlantia of Italy. Atlantia rose after the infrastructure group’s share price was supported by the ongoing takeover process.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-September-2022-MIFU44834.pdfJune, 2022
The portfolio recorded a positive return in the June quarter. Stocks that contributed the most included the investments in Atlantia of Italy and Atlas Arteria and Transurban of Australia. Atlantia surged after the Benetton family, the largest shareholder in the motorway and airport infrastructure company with a 33% stake, announced a takeover of 23 euros a share to take the company private. Atlas Arteria, which operates four toll roads across France, Germany and the US, rose after Australian-based IFM Investors took a stake in the company and commenced discussions over a potential take-private transaction. Transurban rose as traffic numbers recovered to pre-pandemic levels and the tollway operator likewise benefited from the inflation protection tollways offer investors.
The stocks that detracted the most were the investments in Aena of Spain and Norfolk Southern and CSX, two railroad companies from the US. Aena slid after the world's largest airport operator, despite a strong traffic recovery, reported disappointing earnings for the first quarter on the back of higher energy prices. Norfolk Southern and CSX slid on rising talk that tighter monetary policy could send the US economy into a recession, which would hurt railroad volumes, even though railroaders overall reported encouraging results for the first quarter. Norfolk Southern, for instance, posted operating revenue of US$2.9 billion, an increase of 12%.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-June-2022-MIFU44742.pdfMarch, 2022
The portfolio recorded a positive return in the March quarter. Stocks that contributed the most included the investments in Sempra Energy of the US, Enbridge of Canada and Dominion Energy of the US. Sempra Energy rose after investors assessed that one fall-out of the Russia-Ukraine war is faster growth for the company’s North American LNG export business. Enbridge, the owner and operator of the world's largest crude oil and liquids transportation system across Canada and the US, gained on a healthy full-year earnings report (gross profit of C$7.7 billion in 2021 versus C$4.2 billion in 2020) and as the oil price rose, despite having very limited direct exposure to the oil price. Dominion Energy gained after the power and energy company announced fourth-quarter earnings of US$1.63 per share and initiated better-than-expected guidance for 2022 of between US$3.95 and US$4.25 a share.
The stocks that detracted the most were the investments in American Tower Corp, Crown Castle International of the US and American Water Works. US tower companies American Tower and Crown Castle, which have fixed near term price increases on much of their US tower portfol ios, fell after US inflation hit a 40-year high. American Water slid after results for the fourth quarter 2021 of US$3.55 per share fell short of expectations.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-March-2022-MIFU44651.pdfSeptember, 2021
The portfolio recorded a positive return in the September quarter. Stocks that contributed the most included the investments in Sydney Airport, Spark Infrastructure and Red Eléctrica of Spain. Sydney Airport surged following a A$24 billion takeover offer from a consortium led by the infrastructure manager IFM. Red Eléctrica, which operates Spain's electricity grid, performed strongly as the market warmed to its locked-in regulatory outlook and resilience to rising energy prices in Europe. Spark rose after the electricity transmission company received a A$5.2 billion takeover offer from Ontario Teachers' Pension Plan Board and Kohlberg Kravis Roberts.
The stocks that detracted the most were the investments in Crown Castle International, Atmos Energy and Norfolk Southern of the US. Crown Castle, a US-based owner of telecom towers, fell due to increasing concerns around inflation. Atmos Energy, which distributes natural gas, fell over concerns that rising natural gas prices may hamper its capex plans. Norfolk Southern, which operates railroads in North America, slid as sequential weekly rail volume growth slowed and as President Joe Biden issued an executive order that seeks to promote competition in the sector.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-September-2021-MIFU44469.pdfJune, 2021
The portfolio recorded a positive return in the June quarter when utilities was the only sector of 11 in the MSCI World Index to decline in US dollars. In local currency terms, the stocks that contributed the most were the investments in Crown Castle International of the US, American Tower Corp and Transurban of Australia. Crown Castle gained as the owner of 40,000 communications towers and more than 80,000 small cell sites in the US reported solid organic revenue growth of 6.3% for the first quarter, and raised earnings forecasts for the full year due to strong rental revenue and lower borrowing costs.
American Tower rose after the company that provides colocation space to wireless carriers across its more than 186,000 communication sites globally announced decent first-quarter earnings and lifted full-year guidance on increased tower use. Transurban climbed after the operator of 21 toll roads in Australia, the US and Canada said that traffic had rebounded to pre-covid-19 levels in areas where pandemic restrictions had been lifted
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-June-2021-MIFU44377.pdfMay, 2021
10.0% of the excess return of the units of the Fund above the higher of the Index Relative Hurdle (S&P Global Infrastructure Net Total Return Index (A$)) and the Absolute Return Hurdle (the yield of 10-year Australian Government Bonds). Additionally, the Performance Fees are subject to a high water mark.
Benchmark-unaware exposure to global listed infrastructure Conservative definition of core infrastructure Relatively concentrated portfolio of typically 20 to 40 investments Typical cash exposure between 0% - 20% $10,000 minimum investment amount.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-May-2021-MIFU44347.pdfDecember, 2020
The portfolio recorded a negative return in the December quarter. Stocks that detracted included the investments in Koninklijke Vopak of the Netherlands, American Tower and Crown Castle International of the US. Koninklijke Vopak, which stores oil, gas and chemicals, fell as the oil market slipped into backwardation, reducing the demand for shortterm storage, while American Tower and Crown Castle International, which own communication towers, declined as investors rotated to riskier sectors. Stocks that contributed the most included the investments in Aena of Spain and CSX Corp and Sempra Energy of the US. Aena, the world's largest airport operator, rose on hopes that a vaccine for the virus that causes the illness known as COVID-19 would allow passenger traffic to start to recover towards pre-pandemic levels. CSX energy gained after the North American railroad company's third-quarter result showed a strong recovery in volumes and the benefits of increased efficiency measures that have persisted even as volume has recovered, and the company announced an additional US$5 billion buyback. Sempra Energy gained as third-quarter earnings beat expectations and after its SDG&E subsidiary was the only bidder for the San Diego 20-year franchise agreement.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/MAM-MIFU-Retail-Factsheet-December-2020-MIFU44196.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: MGE0006AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://www.magellangroup.com.au/funds/magellan-infrastructure-fund-unhedged/reports/
FUND UPDATES
fund_features:
Magellan Infrastructure (Unhedged) aims to achieve attractive risk adjusted returns over the medium to long-term, while reducing the risk of permanent capital loss. The Fund primarily invests in the securities of companies listed on stock exchanges around the world, but will also have some exposure to cash. The Fund can use foreign exchange contracts to facilitate settlement of stock purchases and to mitigate currency risk on specific investments within the portfolio. It is not our intention to hedge the foreign currency exposure of the Fund arising from investments in overseas markets.
- Benchmark-unaware exposure to global listed infrastructure.
- Conservative definition of core infrastructure.
- Relatively concentrated portfolio of typically 20 to 40 investments.
- Typical cash exposure between 0% – 20%.
structure: Managed Fund