September, 2023
The Fund currently holds 29 global infrastructure stocks and returned -4.6% for September which was below the reference index. Calendar year to date the Fund has returned 1.7%, which compares to a return of -3.1% by the reference index. Global equities have been much stronger year to date, with the MSCI World in AUD up 16.7%.
The main positive stock attribution versus the reference index for the month came from a stock that isn’t held by the Fund, US clean energy and regulated utility Nextera Energy (NEE), which was down 14% for the month. NEE is the largest reference index constituent at approximately 4.5% and it was dragged down by news at its separately listed ‘YieldCo’ Nextera Energy Partners LP (NEP). NEP is a limited partnership that was formed to acquire and manage some of NEE’s clean energy projects. We have been suspicious of the governance structure of NEP for some time, hence we do not own NEP either. NEP announced it was halving its distribution growth as it was unsustainable in the higher interest rate environment.
Negative to Fund attribution were holdings in cell towers such as Cellnex which was down 7% and renewable energy companies such as Energias de Portugal (EDP) which was down 6%.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-18.pdfAugust, 2023
The Fund currently holds 30 global infrastructure stocks and returned -1.5% for August which was broadly in line with the reference index. Year to date the Fund has returned 6.6%, which compares to a return of 1.3% by the reference index. Global equities have been much stronger year to date, with the MSCI World in AUD up 21.6%.
Most of our listed infrastructure holdings were weaker over August as US long rates climbed higher. Mexican toll road holding Aleatica was the best performer as it neared takeover and delisting by IFM. Long cashflow duration stock underweights Transurban and Nextera Energy were the next largest adders versus the reference index (their shares were both off ~8%). Our transportation infrastructure holdings continued to report traffic recoveries post COVID. For example, Ferrovial’s largest toll road asset, the Toronto Highway 407, managed to get back to pre-COVID traffic in the month of June. Meanwhile Zurich Airport reported a better than expected first half result and said that passengers in the first half were at 88% of the level in 2019.
One of the smallest Fund positions offshore wind developer and operator Orsted was particularly weak, down 25% in local currency terms which is an unusually large move for a listed infrastructure stock. Orsted announced impairments to their US offshore wind portfolio. Supply chain impacts, outlook for tax credits and higher US interest rates all conspired to reduce future US project returns
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-1-2.pdfJuly, 2023
The Fund currently holds 32 global infrastructure stocks and returned 0.8% for July which was broadly in line with the reference index. Year to date the Fund has returned 8.3%, which compares to a return of 2.9% by the reference index. Global equities have been much stronger year to date, with the MSCI World in AUD up 19.7%.
Brazilian toll road holding Ecorodovias was the strongest performer over July (up 26%). Revenue and cashflows were reported ahead of expectations for the first half of the year. Total like-for-like traffic in the first half was 8% above the pre-COVID 2019 level and tolls saw strong inflation-driven increases.
European transport concessions Ferrovial and Getlink continued their strong start to the year (up 5% and 3% respectively for July). Some of our large US regulated utility holdings started to perform after a weak start to the year, with Ameren, Entergy and Duke Energy returning between 4 and 6%.
There was ongoing weakness in US cell-tower companies and our main holding in that sector, Crown Castle, was down 5.0% making it our weakest holding for the month. We are seeing attractively priced opportunities in the US cell-tower sector after a weak 18 month period. The towers have been weak due to concerns over rate increases, leverage and their growth outlook. We see these factors as being more than priced in currently with their strong business models, defensive contracted earnings and long-term growth as digitalisation continues.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-17.pdfJune, 2023
The Fund currently holds 30 global infrastructure stocks and returned -0.9% for June, underperforming the reference index by 0.9%. This completed the quarter with a return of -0.1% for the Fund, which compares to a return of 0.3% for the reference index.
It has been a particularly strong start to 2023 for global equities. In AUD terms the MSCI World index is up 17.2% for the first half of the year. This compares to the Fund returning 7.5% and the listed infrastructure reference index returning 2.1%. Global equities have been propelled by a large rally in US tech stocks. Indeed, the first half of 2023 was the worst first half for US utilities (many of which are in the infrastructure universe) versus the broader US equity market, since the 1990s. US utilities have been relatively weak yearto-date due to the market having interest rate concerns (even though the ten year bond yield has barely changed) and a stronger US economy than many predicted at the start of the year.
There was a mixed bag of relatively good performers in the Fund over June. Orsted, Cheniere Energy and Flughafen Zurich all did well (up 6-9%). Meanwhile Getlink, Cellnex and Severn Trent were the largest detractors (down 2-5%). During the month, except for the UK water sector (discussed below), news flow was relatively limited.
The Fund has nearly 6% invested in UK water utilities and towards the end of the month the privately owned and largest UK water utility Thames Water (not held) ran into financial difficulty. The problems at Thames Water have been brewing for years through a combination of high gearing and poor operational performance. This is in contrast to our listed holdings in Severn Trent and United Utilities. For example, our holdings are geared at around 60% of their regulated asset base (RCV) compared to ~80% at Thames Water. The regulator OFWAT assumes gearing at 60% and a rising interest rate environment can potentially expose more highly leveraged companies depending on the make-up of their debt profile. Severn Trent and United Utilities have a four-star environmental rating from the EPA and they have been able to earn positive financial incentives for good operating performance over recent years. This is in contrast to Thames Water which has a twostar rating and has suffered financial penalties for operational performance. Our view is that the situation at Thames Water is a crisis of the private equity infrastructure ownership model rather than a wider UK water sector issue. In addition, we have observed over recent years that the prices being paid in private transactions globally have been at a material premium to where comparable infrastructure assets trade in listed markets.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-16.pdfMay, 2023
The Fund currently holds 30 global infrastructure stocks and returned -4.5% for May, underperforming the reference index by 1.4%.
Global listed infrastructure stocks were generally weaker over the month. Regulated US utilities continued their relative weakness year to date, with holdings in Ameren and American Electric Power down 9-10%. Likewise US cell-tower stocks continued their recent weakness.
The UK makes up 13% of the Fund and the four holdings all reported full-year results (March year-end) over May. Scottish energy and networks company SSE PLC was the most impressive with earnings and capex upgrades unveiled. The flexibility of thermal generation is currently very profitable in a volatile UK power market. Fresh capex includes increased investment in the electric networks and renewables space. Results for the UK water holdings met expectations and we think they are well placed for the upcoming five year regulatory pricing review that will mostly take place over this year and next. The potential for increasing environmental spend is a feature that we are watching closely. Inflation remains higher than expected in the UK and the holdings generally have strong inflation protection embedded in their regulatory frameworks.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-15.pdfApril, 2023
The Fund currently holds 30 global infrastructure stocks and pleasingly returned 5.5% for April, outperforming the reference index by 2.0%.
Our European infrastructure holdings continued to perform well and this has been a solid theme so far in 2023. Owner and operator of the UK-France Channel Tunnel concession Getlink delivered a strong Q1 result, with broad-based strength across its business including a stronger-than-expected rebound in Eurostar passenger volumes. Even though volumes are still recovering post-COVID, car and truck shuttle pricing has also continued to deliver and was ahead of expectations amidst high inflation. Finally, its newly-constructed ElecLink transmission cable linking the French and UK power grids through the tunnel has continued to perform well and has already begun contracting 2024 capacity. Getlink is a >5% position in the Fund and was up 12% for April.
Despite the French political protests, we also saw further strength in French concession (toll roads and airports) and construction company Vinci, which was up 9% for April.
European cell-tower holdings Cellnex and INWIT continued to perform well, in contrast to our US cell-tower company Crown Castle which was down 8% for April after reporting a lacklustre Q1 result, but maintained guidance for the full year.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-14.pdfJanuary, 2023
The Fund currently holds 30 global infrastructure stocks and pleasingly returned 1.3% for January, outperforming the reference index by 2.6%.
Our European infrastructure holdings were generally stronger over January, especially the transportation concessions such as Vinci (up 11%) and Ferrovial (up 10%).
European cell tower company Cellnex was up 16% in local currency, reflecting strength in the tower sector and also media reports about a potential takeover by American Tower and Brookfield Asset Management. We built around a 5% position in Cellnex over 2022 as it was particularly weak over interest rate concerns.
US utilities were modestly weaker relative to the listed infrastructure sector, even with the decline in bond yields. This was due to the US equity market moving money into general US equities to capture the market’s ‘risk-on’ mood. Our large regulated utility holdings such as Ameren and American Electric Power were down 2% and 1% respectively. Likewise US utilities that we don’t hold were down a similar amount, with the exception of large-cap Nextera Energy (not held) which was down 11% following a mixed 2022 financial result, management turnover and an alleged political financing investigation.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-12.pdfDecember, 2022
The Fund currently holds 30 global infrastructure stocks and returned -2.4% for December, outperforming the reference index by 1.0%. For the 2022 calendar year, the Fund outperformed the reference index by 3.6%.
In what was a weak month for the listed infrastructure sector, Portuguese listed utility and renewable energy developer EDP performed relatively well up 3% in local currency. Other holdings with renewable portfolios including SSE PLC and Orsted also performed relatively well (flat and up 2% respectively).
We did see weakness in US holdings with LNG export infrastructure assets, Cheniere Energy and Sempra Energy which were down 15% and 7% respectively. Despite the pullback in December, both of these stocks performed strongly in the 2022 calendar year.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-11.pdfNovember, 2022
The Fund currently holds 30 global infrastructure stocks and returned 3.5% for November, outperforming the reference index by 0.5%. Over 12 months, the Fund has outperformed the reference index by 3.2%.
After being a laggard in the Fund over the last year, Vopak delivered a solid set of numbers for Q3 that sent the stock 36% higher over November. Vopak’s tank farm infrastructure assets have seen better demand for storage than expected across oil, chemicals and gases. This was a relief for the market as there have been concerns this year that Russian oil exiting some markets would weaken demand and utilisation at Vopak’s storage assets. Vopak’s full-year earnings guidance for 2022 was subsequently increased.
There was weakness in US Fund holding Dominion Energy which was down 13%. Dominion Energy reported Q3 earnings in line with expectations, but announced a top-to-bottom strategic business review that is uncertain at this early stage.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-10.pdfOctober, 2022
The Fund currently holds 32 global infrastructure stocks and returned 5.5% for October, outperforming the reference index by 1.6%. Over 12 months, the Fund has outperformed the reference index by 2.2%.
The macro situation is still dominating the short-term market movements and it was positive for the Fund to see the stabilisation of the UK political situation with Rishi Sunak appointed Prime Minister. As a measure of stability, UK 10 year bond yields declined by 56 basis points over the month to finish at 3.52%. The Fund has holdings in four UK regulated utilities amounting to a 13% exposure and they bounced back after the September turmoil accompanied by very little operational news.
Strong performersfor the month included our large positions in European toll roads Vinci (+12%) and Ferrovial (+6%). Both stocks reported strong Q3 results. Toll road and airport traffic at Vinci continued to grow, with their French road traffic +2.5% versus the same quarter in 2019 despite the higher fuel prices. Similar trends were observed at Ferrovial.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-9.pdfSeptember, 2022
The Fund currently holds 31 global infrastructure stocks and returned -6.7% for September, underperforming the reference index by 0.8%. Over 12 months, the Fund has outperformed the reference index by 0.5%.
The macro situation dominated over the month and this was most pronounced in the UK. Late in the month saw some sharp pullbacks in infrastructure stock prices after the expansionary ‘mini-budget’ and energy price caps that will be costly for the government. Regulated UK utility holdings including the water stocks and National Grid were down 14-16% due the UK macro rather than anything operational.
In Europe, the cost-of-living crisis intensified, especially after Russia cut gas exports on its Nord Stream 1 pipeline. Whilst European governments quickly introduced measures to alleviate the impacts of higher energy bills for customers, the impact this could have on economies remains a large concern. The heightened cost of energy, and concerns around the security of supply, did once again support the performance of US LNG infrastructure assets such as Cheniere Energy which was up 4% for the month.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-8.pdfAugust, 2022
The Fund currently holds 32 global infrastructure stocks and returned -1.8% for August, underperforming the reference index by 2.0%. Over 12 months, the Fund has outperformed the reference index by 1.1%.
Fund holdings in longer duration sectors such as renewable energy developers, cell towers and long-life tollroads were weak over the month.
UK regulated holdings were 3-7% weaker over the month as a UK ‘cost of living’ crisis continued to develop. Whilst UK regulation is effectively independent from the government and structured in a transparent and economic way, there is concern that UK consumers will have trouble paying significantly higher energy bills. The regulated component of energy bills where we focus is much less at risk than the commodity and market facing segments of the value chain which we seek to avoid such as production and generation.
US energy infrastructure company Cheniere continued to perform well, up 7%, as its growth prospects improved due to the strong global LNG demand situation.
Zurich airport performed well, up 5% for the month after it reported strong first half results. Traffic continues to recover and cost management was a feature.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-7.pdfJuly, 2022
The Fund currently holds 32 global infrastructure stocks and returned 4.5% for July, outperforming the reference index by 1.3%. Over 12 months, the Fund has outperformed the reference index by 2.9%.Most holdings performed well over the month. One of the Fund’s largest holdings is Getlink with a 5.5% weight. It was up 16% in
local currency terms. Getlink reported solid first half results with ongoing strong pricing on the car shuttle and better than expected passenger volumes on the Eurostar train service. However, the largest earnings upgrades from the sell-side came from the great operating conditions for the new Eleclink electricity interconnector between the UK and France. Eleclink is well placed given the high and volatile electricity prices, with energy security being a powerful theme in the infrastructure sector and wider society.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-1-1.pdfJune, 2022
The Fund currently holds 32 global infrastructure stocks and returned 4.5% for July, outperforming the reference index by 1.3%. Over 12 months, the Fund has outperformed the reference index by 2.9%.Most holdings performed well over the month. One of the Fund’s largest holdings is Getlink with a 5.5% weight. It was up 16% in
local currency terms. Getlink reported solid first half results with ongoing strong pricing on the car shuttle and better than expected passenger volumes on the Eurostar train service. However, the largest earnings upgrades from the sell-side came from the great operating conditions for the new Eleclink electricity interconnector between the UK and France. Eleclink is well placed given the high and volatile electricity prices, with energy security being a powerful theme in the infrastructure sector and wider society. Scottish utility SSE was up 13% as the threat of a UK windfall tax on electricity generation dissipated. Energy affordability remains a key focus in our company management meetings given the inflationary pressures on consumers at the moment. SSE is also the largest player in the UK offshore wind market and the renewable sector with their long duration earnings benefitted from the reduction in long bond rates over July. We see renewables via the energy transition thematic as an area for rapid growth over coming years. Holdings in the pure play renewables companies like EDPR and Orsted also performed well over the month.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-6.pdfMay, 2022
The Fund currently holds 32 global infrastructure stocks and returned 1.0% in May, underperforming the reference index by 0.3%. Over 12 months, the Fund has outperformed the reference index by 2.8%.
Fund holding NiSource had a positive month, up 8% in local currency terms. Vopak had a modest bounce in May, up 4%, following weakness in the prior months.
Getlink continued its recent strength, up a further 3% in local currency terms. Getlink is one of the largest positions in the Fund, at 6.1% and we recently met with both the Chief Executive Officer and Chief Financial Officer in person, in Paris. In May, the company launched the commercial operations of its electricity interconnector between France and the UK. A timely addition given the increased interest in energy security. This project is an excellent example of the optionality of existing infrastructure whereby new revenue streams can be leveraged off existing assets. The cable also has green credentials, having no interference with the marine ecosystem since it travels through an existing tunnel.
Regulated utilities in the UK were weaker during the month. Severn Trent, SSE and United Utilities Group all falling, 7%, 5% and 8% respectively. While full-year results announced during the month for each of the companies were in line with our expectations, there are concerns over increasing operating costs given the UK’s high inflation. This is despite the strong inflation pass-throughs embedded via the UK real regulatory framework.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-5.pdfApril, 2022
The Fund currently holds 32 global infrastructure stocks and returned 3.1% in April, representing an outperformance of the reference index by 1.3%. Year to date, the Fund has outperformed the reference index by 4.0%.
A fund holding Atlantia received a takeover offer from Edizione and Blackstone. Atlantia had recently shed the troubled ASPI Italian toll road network and is now comprised of various tollroads across Europe and Latin America, along with an airports portfolio which includes Rome’s ADR.
Getlink had another strong month, up 7% in local currency terms. Investors liked the company’s enhanced earnings from their newly constructed electricity interconnector cable through the tunnel, linking the UK to France. The “travel recovery” theme also benefited the stock as did the possibility of corporate appeal following Atlantia’s takeover offer.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-4.pdfMarch, 2022
The Fund currently holds 31 global infrastructure stocks and returned 3.0% in March, underperforming the reference index by 0.8%. Year to date, the Fund has outperformed the reference index by 2.6%.
March saw the continuation of the Russian invasion of Ukraine and its impact on financial markets. North American stocks outperformed their European counterparts.
Some gas infrastructure companies saw continued strength in March as demand for the commodity rose further as Western nations sought to find alternative sources of fuel to their existing Russian supplies. A fund holding Sempra Energy, which own US LNG export facilities, was up 17% in local currency terms, and NiSource which own regulated gas and electric networks was up 10%.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-3.pdfFebruary, 2022
The Maple-Brown Abbott Global Listed Infrastructure Fund (the “Fund”) is an actively managed fund that invests in global listed infrastructure securities across regulated, contracted, and concession assets or networks that provide essential services, with a focus on sustainability and ESG factors. These infrastructure assets typically deliver lower volatility and higher earnings stability as well as higher inflation protection compared with broader global equities. Generally, the securities in the portfolio have a market capitalization greater than US$500 million. Our investment approach is based on a deep, fundamental analysis of infrastructure companies combined with a top-down approach to managing macro risks. We believe that if inflation protection and lower volatility are key investment objectives, then focusing on these characteristics must be central to the investment process.
We consider potential investments from a strictly selected infrastructure Focus List of around 110 companies across more than 25 countries. The companies on the Focus List are those that we believe provide the strongest combination of inflation protection and low volatility. We utilize a high conviction approach to ensure that the strongest company views are included in the portfolio. As a result, the strategy is expected to have between 25 and 35 securities in the portfolio, diversified by domicile at any one time.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Factsheet.pdfJanuary, 2022
The Fund currently holds 31 global infrastructure stocks and returned 1.5% in January, outperforming the reference index by 1.4%. The Fund’s12-month outperformance is +2.2% against the reference index.Several gas infrastructure companies in North America enjoyed a positive start to the year. Gas supply disruptions first seen in 2021 continued and the growing geopolitical risksin Eastern Europe and the associated concerns about Europe’s gas supply from Russia, helped this sub-sector’s performance as the US government pledged to work with fellow international gas suppliers to ensure gas supply to its European allies.
Fund holdings in the regulated gas utilities of NiSource and Sempra Energy were up 6% and 4% respectively. Contracted US LNG export facility Cheniere Energy was up 10%, despite the fall in broader US equity markets. Likewise, Fund holding Williams Companies, a pipeline company which stores and transports gas, was up 15%.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-2.pdfDecember, 2021
The Fund currently holds 31 global infrastructure stocks and returned 5.0% in December, outperforming the reference benchmark by 0.4%. Calendar year 2021 has been a strong year for the Fund, with a return of 21.4%. This is an underperformance of 0.5% against the reference benchmark index’s return of 21.9%.
Transport concession companies bounced back in December, recovering from sharp losses after the Omicron scare late in the prior month. Notable performers included Fund holdings, Ferrovial SA, Getlink and Vinci which were all up over 11% in local currency terms. December was also a positive month for North American regulated utility companies. Fund holdings NiSource, Entergy and Ameren all finished the month with increases of 9% or more. There was some weakness in renewables company EDP Renovaveis SA (-3%) and tank storage infrastructure company Vopak (-8%).
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary-1.pdfNovember, 2021
The Fund currently holds 32 global infrastructure stocks and returned 2.1% in November, underperforming the reference index by 0.3%.
Regulated UK utilities mostly performed well after reporting solid results. National Grid had a positive 1H/22 result which was well received at a capital markets day held in November, it was up 8% in local currency terms. Regulated water utilities in the UK also had a positive month on the back of solid half year results showcasing outperformance of regulatory targets. Severn Trent and United Utilities Group were up 5% and 4% respectively. Italian cellphone tower company Inwit, who owns approximately half of Italy’s cell towers, was up 6%
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Global-Listed-Infrastructure-Fund-Commentary.pdfOctober, 2021
The Fund currently holds 33 global infrastructure stocks and returned -0.3% in October, performing in line with the reference index.
Ferrovial SA was a stand-out performer within the transportation infrastructure subsector, rising 8% in local currency terms during the month. We believe that Ferrovial has over half of its equity value in North American toll roads and they are seeing a recovery in traffic as society normalises.
Renewable energy company EDP Renovaveis SA had a strong October, up over 12%. The company designs, develops and operates renewable energy assets which benefitted from the spotlight on such energy generation against the backdrop of the leadup to the 2021 United Nations Climate Change Conference, known as COP26. UK regulated utility holdings, Severn Trent, United Utilities Group, SSE and National Grid saw positive performance in October, rising 5- 7%. These companies have been good performers for the Fund in 2021 as investors are attracted to the green investment theme, inflation protection and stability of earnings.
Getlink, one of the Fund’s top holdings, fell slightly in October down 2%. Its financial results for the third quarter were released and were generally in line with analyst consensus expectations. Extended border closures have understandably hurt passenger volumes up until this point, however there is substantial indication that there is pent up demand for Channel crossings once travel restrictions are further eased.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/84-Commentary-7.pdfSeptember, 2021
The Fund currently holds 34 global infrastructure stocks and returned -2.8% in September, underperforming the reference index by 0.3%.
As high levels of vaccination coverage were attained in a number of European countries, respective governments loosened restrictions on movement and several travel corridors were opened in September. Accordingly, transportation infrastructure concessions saw positive performance, with both airport holdings Flughafen Zuerich and Fraport up 10% in local currency terms and multitransport concession company Ferrovial SA up 3%. Global concerns regarding an ‘energy crunch’ were heightened in September as supply chains of both oil and natural gas came under scrutiny. LNG exporter, Cheniere Energy rose sharply as a result, up 12% for the month in local currency terms. North American pipeline companies also benefited from the supply shock, with Williams Companies and Kinder Morgan up 6% and 3% respectively.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/84-Commentary-1-1.pdfAugust, 2021
The Fund currently holds 33 global infrastructure stocks and returned 2.3% in August, underperforming the reference index by 0.5%.
Spanish renewable energy company and Fund holding EDP Renováveis was up 14% in local currency terms. This solid performance followed their strong first-half earnings result which saw the company demonstrate the execution of their Strategic Plan. Both growth and return metrics exceeded investor expectations. The company now has 6.7GW of secured renewable energy projects (64% of its 2021-23 target) with healthy returns locked in.
Furthermore, the company continues to demonstrate an ongoing ability to crystallise upfront gains through its asset rotation program.Despite the increase in long bond yields, North American regulated utilities performed well. American electric utilities Entergy Corp and Ameren Corporation were up 8% and 5% respectively.Meanwhile Brazilian utility CPFL Energia was up 15% in the same period following a good Q2 result.
After a good run over recent months, UK regulated water utility, Severn Trent softened somewhat, down 1% on no material news.As news flow on the COVID-19 Delta strain remained intense, transportation infrastructure concessions were mixed in August. Swiss airport Flughafen Zuerich was up 4%, Getlink was up 1%, but slightly lower than the reference index and Spanish listed toll road and airport company Ferrovial was down 2%
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/84-Commentary-6.pdfJuly, 2021
The Fund currently hold 33 global infrastructure stocks and returned 3.7% in July, outperforming the reference index by 0.2%. UK water utilities continued their strength over July.
Demonstratively, Fund holdings Severn Trent and United Utilities Group were up 12% and 10% respectively in local currency terms. Operating results for the financial year ended March were strong, albeit reported in late May. Recent declines in UK long rates and an attractive ESG story have added to the attractiveness of the sector. Additionally, high prices have notably been paid in recent transactions for UK regulated assets such as Western Power Distribution, Bristol Water and Scotia Gas Networks. All these transactions were sold at healthy premiums to the Regulated Capital Value (RCV) multiple of our similarly regulated holdings in UK listed water utilities.
Two Australian listed infrastructure companies were the subject of take-over interest in July. Fund holding Spark Infrastructure was up 24% after they received multiple price bids from a consortium of KKR and Ontario Teachers’ Pension Plan Board. Sydney Airport also received a take-over offer and was up 35% over the month. Sydney Airport is not held in the Fund partly due to our view on the risks of Australia’s continued international border closures. Nonetheless, the high price initially offered for the airport highlights the scarcity of such infrastructure assets. Both take-overs were from unlisted bidders who seem willing to pay large premiums for such opportunities. The latest lockdown and fears over the Delta strain in Greater Sydney at the end of July may yet have an effect of whether the Sydney Airport take-over comes to fruition.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/84-Commentary-5.pdfJune, 2021
The Fund currently holds 32 global infrastructure stocks and returned 1.4% in June, underperforming the reference index. For the quarter ending 30 June 2021, the return for the Fund was 5.7%, an outperformance of 1.3% against the reference index.
Listed infrastructure was broadly flat as a sector in local currency terms. There was not much dispersion amongst the returns of individual Fund holdings. On the positive side, Edison International was up 3%, whilst Williams Companies and Cheniere Energy were both up 2% in local currency terms.
As the Delta variant of COVID-19 began to take hold in June, transportation infrastructure concession stocks were adversely impacted. Vinci was down 3% and Flughafen Zuerich was down 4% in local currency terms. Despite significant progress with vaccinations and reduced hospitalisation rates, hopes for many European summer holiday plans were dashed. Illustratively, passenger numbers at Flughafen Zuerich are still down over 80% compared to May 2019.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/84-Commentary-4.pdfMay, 2021
The Fund currently holds 32 global infrastructure stocks and returned 0.7% for May, outperforming the reference index return of 0.3%. Year to date, the return for the Fund is now 8.7%, an outperformance of 0.8% against the reference index.
UK regulated utility companies had good relative performance in May following the release of solid results for the financial year ending March 2021. Additionally, Severn Trent completed a £250m capital raising during the month. The raising is to fund various UK Green Recovery Projects such as improving 500km of rivers, removing lead pipes from homes and creating bathing quality waterways. Severn Trent has the largest allocation of these new green projects amongst the UK water sector companies.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/84-Commentary-3.pdfApril, 2021
The Fund currently holds 32 global infrastructure stocks and returned 3.6% for April, an outperformance of 1.6% against the reference index’s return of 2.0% in AUD terms. Calendar year to date, the return for the Fund is now 7.9% outperforming the reference index’s return of 7.5%.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/84-Commentary-2.pdfMarch, 2021
The Fund currently holds 32 global infrastructure stocks and returned 8.6% for March, which was slightly below the reference index which returned 8.8% in AUD terms. The return for the Fund year to date is now 4.2%. The US regulated utility holdings were particularly strong despite the increase in US bond yields. Holdings like Ameren, Sempra and Duke were all up over 12% in local currency terms. This followed weak performance in February when the US utilities really lagged US equities. There was modest weakness in some of the transportation infrastructure names such as Getlink (down 4%) and Flughafen Zurich (down 3%). This weakness was due to ongoing concerns over COVID-19 cases in some countries and further resultant lockdowns.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/84-Commentary-1.pdfFebruary, 2021
The Fund currently holds 31 global infrastructure stocks and was down for February, returning -2.0% and underperforming the reference index by 0.2%.
As COVID-19 vaccine rollouts were underway globally and additional vaccines were approved by government regulators, sentiment towards transportation infrastructure companies was positive. Fund holdings Vinci and Fraport were up 12% and 17% in local currency terms respectively. Likewise, Getlink, Flughafen Zeurich and Ferrovial SA were all up over 4% in local currency terms.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/84-Commentary.pdfSeptember, 2020
The Fund currently holds 32 global infrastructure stocks and was up strongly for November, returning 7.1% and outperforming the reference index by 0.9%. Over the last year, the Fund underperformed the reference index by 0.5%. On the back of several positive vaccine announcements, the transportation infrastructure subsector had a very strong month in November. Toll-roads and airports rebounded strongly from earlier weakness as investors welcomed the prospect of a return to travel on roads and across international borders. Fraport was up 53% in local currency terms and fellow European airport Flughafen Zuerich was up 24%. Likewise Vinci, with its exposure to toll-roads and airports, saw an increase of 26% and Getlink was up 21% with the Channel tunnel outlook seen in a better light.
Infrastructure storage tank company Vopak lagged and was down 1% in November, its quarterly results essentially in line with expectations, but it was not positioned to benefit from the ‘recovery rally’ that was experienced during the month.
Similarly, regulated utilities in both North America and United Kingdom fell slightly in the month as their dependable earnings stability – a safe haven in previous months’ volatility, took a relative back seat in the vaccine-powered rally for November. Ameren Corporation and American Electric Power were down 4% and 5% respectively, whilst National Grid and Severn Trent were down 6% and 2% respectively.
File:ticker: MPL0008AU
commentary_block: Array
factsheet_url:
https://www.maple-brownabbott.com.au/global-listed-infrastructure-fund
Monthly Commentary
release_schedule:
fund_features:
Maple-Brown Abbott Global Listed Infrastructure Fund is an actively managed, high conviction fund that invests in global listed infrastructure equities either directly in their locally domiciled market, or indirectly through Depository Receipts. Generally the companies we invest in have a market capitalisation greater than US$500 million. The Fund may also invest in hybrid or debt securities issued by infrastructure entities, or in unlisted equities provided that they are expected to be listed within 3 months from the date of investment.
- The Fund typically holds between 25–35 stocks.
- Aims to outperform the benchmark over rolling 5 year periods.
- Exposure to a single stock should not be greater than 10% of the total portfolio.
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