September, 2023
The portfolio returned -5.46% (net of fees) in September versus the benchmark return of 0.67%. The total contribution to local returns from our equity holdings was -5.33%. The main contributor in the period was our holding in Fraport. The main detractors were Edison International, SES and Orsted.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2023-09-30-Atlas-Feeder-AUD-H.pdfAugust, 2023
In Australian dollar terms, the hedged portfolio fell 3.84% (net of fees) over the month of August, while the unhedged portfolio fell 1.00% (net of fees).
The largest contributions to the absolute portfolio return came from SES (+1.1%), Fraport (+0.2%) and Elia (+0.1%). The main detractors were United Utilities (-0.4%), Norfolk Southern (-0.6%) and Orsted (-1.5%).
On a relative basis, the portfolio’s overweight to Europe (74% portfolio versus 18% benchmark) was positive to returns (+1.51%), and the lower allocation to the North American sector (24% portfolio versus 65% benchmark) also had a positive impact (+0.33%).
The portfolio benefited from its overweight position in European Electric Utilities (+0.3%), however the exposure to European Renewables (-1.24%) detracted from returns, as did the underweight position in US Pipelines & Storage (-0.46%). Stock selection in both markets was negative overall, with Norfolk Southern (US Railways) underperforming its sector average, which was slightly offset by holding in SES (European Communication), Fraport (European Airports) and Terna (EU Electric).
On a company level we would note the following key developments:
- SES (European satellites) reported its Q2 result in early August, confirming its 2023 earnings outlook, as well as announcing a €150m buyback program to be executed over the coming 12 months, to which the market responded positively. Later in the month the Federal Communications Commission validated that SES had completed all necessary work to clear the C-band spectrum, clearing the way for the final payments to be made later this year. Although the buyback represented only a small part of the potential C band proceeds (US$3bn), we view the announcement as a very positive signal of priorities from the new management team.
- Late in the month Orsted (European renewables) announced that it had anticipated impairments in its US offshore wind business due to supply-chain issues, as well as expectations around tax credits and interest rates, with total impairments potentially as high as DKK 16bn (USD 2.3bn). Despite Orsted not yet at Final Investment Decision for many of its US offshore projects, the impairments would be taken against the assets Orsted has already built up in anticipation, including supply-chain and operational assets. Given the timing of the announcement, so close to Q2 results earlier in the month, as well as the ongoing issues in the offshore space globally the market was taken completely by surprise and responded negatively as a result. From an ATLAS perspective, we saw the only material incremental negative as being the reduction in the expected ITC credit - given the company had already guided capex higher and we had already included higher interest rates in our base case.
- Fraport (European airport) reported its Q2 results which showed traffic at Frankfurt airport recovering to ~82% of 2019 levels, and Asia-Pacific traffic recovering strongly across the quarter, which should show up in numbers in the coming months. Following ongoing consultations with the airlines, Frankfurt also announced an expected tariff increase of 9.5% in 2024, which is on the back of a headline is a 4.5% increase in 2023. This makes Frankfurt one of the only European airports under ATLAS coverage to raise tariffs so substantially post Covid. This increase will offset the cost pressures and slower retail ramp-up that Frankfurt is seeing compared with peers.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2308-AIAFF-Monthly.pdfJuly, 2023
In Australian dollar terms, the hedged portfolio rose 0.86% (net of fees) over the month of July, while the unhedged portfolio rose 0.41% (net of fees). The largest contributions to the absolute portfolio return came from SES (+0.7%), Enel (+0.4%) and Edison International (+0.4%). The main detractors were Terna (-0.1%), Aeroports de Paris (-0.2%) and Orsted (-0.4%).
On a relative basis, the portfolio’s overweight to Europe (68% portfolio versus 18% benchmark) was a detractor (-1.0%), and the lower allocation to the North American sector (29% portfolio versus 66% benchmark) also had negative impact (-0.3%). Offsetting the regional allocation, on a sector basis the portfolio benefited from a lack of exposure to US Communications (+0.3%) as well as an overweight to UK Water (+0.1%). Stock selection was positive overall, with the strongest performance in UK/Europe, particularly within the Communications (+0.7%) and Electric Utilities sectors (+0.4%).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2307-AIAFF-Monthly.pdfJune, 2023
In Australian dollar terms, the hedged portfolio rose 0.44% (net of fees) over the month of June, while the unhedged portfolio fell 0.51% (net of fees). The largest contributions to the absolute portfolio return came from Norfolk Southern Corporation (+0.4%), Enel (+0.4%) and Orsted (+0.3%). The main detractors were SES (-0.2%), Severn Trent (-0.2%) and Aeroports de Paris (-0.2%).
On a relative basis, the portfolio’s overweight to Europe (69% portfolio versus 18% benchmark) was negative to returns (-0.9%), and the lower allocation to the North American sector (27% portfolio versus 65% benchmark) also had a negative impact (-0.4%), although this was slightly offset by the lower allocation to Asia Pacific (+0.3%). The portfolio benefited from exposure to US Electric Utilities (+0.1%, driven by our holding in Edison International) and European Electric Utilities and Renewables (+0.5%, driven by our holding in Enel, E.ON and Orsted), offset against our positions in UK Water (-0.7%). Stock selection was relatively neutral, excluding Norfolk Southern Corporation which outperformed its sector average.
On a company level we would note the following key developments:
y Severn Trent / United Utilities (UK Water): The CEO of Thames Water (UK water – unlisted), Sarah Bentley, left the business at the end of June with immediate effect, which led to concerns over the financial viability of the company given its highly-leveraged balance sheet. There has been speculation of a nationalisation or further regulatory oversight to ensure the company remains financially viable. Despite the material difference in leverage and operational outcomes, the news led to share price declines from the listed UK water companies Severn Trent, United Utilities and Pennon.
y SES (European satellites): Announced in late June it has ceased merger talks with Intelsat. SES first disclosed talks about a possible combination with Intelsat in March. ATLAS notes that we had viewed this deal as potentially value creating in principle, but hard to execute with downside risks to SES shareholders in the short term. Given the complementary nature of the businesses, there would have been material capex savings from a combination of the businesses, and it would have assisted in reducing capacity over time. However, a combination of the top two largest commercial satellite companies would have faced substantial regulatory scrutiny and come at a sensitive time for the inclusion of SES in a ‘European’ IRIS consortium. With the end of talks we will continue with our engagement objectives to target a combination of share buybacks and dividend increase from the C-band proceeds. Earlier in the month, the company also announced that Steve Collar (CEO) would be stepping down at end of June, with Ruy Pinto, the Chief Technology Officer, assuming the interim CEO role until a permanent successor is named.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2306-AIAFF-Monthly.pdfMay, 2023
In Australian dollar terms, the hedged portfolio fell 3.24% over the month of May, while the unhedged portfolio fell 3.34% (net of fees).
The largest contributions to the absolute portfolio return came from Norfolk Southern Corporation (+0.1%) and Hera (+0.1%). The main detractors were Edison International (-0.6%), United Utilities Group (-0.5%*) and Enel (-0.4%).
On a relative basis, the portfolio’s overweight to Europe (73% portfolio versus 18% benchmark) was positive to returns (+1.35%), and the lower allocation to the North American sector (21% portfolio versus 65% benchmark) added 0.78%, this was slightly offset by the lower allocation to Asia Pac (-0.63%). The portfolio benefited from exposure to UK/Europe Electric Utilities (+0.3%, driven by our holding in Terna and Hera) and European Communications (+0.2%, driven by our holding in SES and Eutelsat), and from being underweight in US Electric (+0.4%) and US Pipelines & Storage (+0.4%). Stock selection was relatively neutral, excluding Norfolk Southern Corporation which outperformed its sector average.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2305-AIAFF-Monthly-1-1.pdfApril, 2023
In Australian dollar terms, the hedged portfolio rose 3.88% over the month of April, while the unhedged portfolio rose 6.43% (net of fees). The largest contributions to the absolute portfolio return came from Enel (+0.7%), Getlink (+0.5%) and Aeroports de Paris (+0.4%). The main detractor was Norfolk Southern Corporation (-0.2%). On a relative basis, the portfolio’s overweight to Europe (73% portfolio versus 18% benchmark) was positive to returns (+1.2%), and the lower allocation to the North American sector (21% portfolio versus 66% benchmark) added 0.5%, this was slightly offset by the lower allocation to Asia Pacific (-0.3%).
The portfolio benefited from exposure to UK/Europe Electric Utilities (+0.9%, driven by our holding in Enel), and from being underweight in US Communications (+0.3%). Stock selection was broadly positive across all sectors, excluding within European Communications and US Railways, with SES, Eutelsat and Norfolk Southern Corporation underperforming their sector averages.
File:March, 2023
In Australian dollar terms, the hedged portfolio rose 1.54% over the month of March, while the unhedged portfolio rose 4.04% (net of fees).
The largest contributions to the absolute portfolio return came from Edison International (+0.6%), E.ON (+0.5%) and Enel (+0.5%). The main detractors were Fraport (-0.5%), SES (-0.4%) and Norfolk Southern Corporation (-0.3%).
On a relative basis, the portfolio’s overweight to Europe (73% portfolio versus 18% benchmark) detracted -0.9% to returns, and the lower allocation to the North American sector (22% portfolio versus 66% benchmark) detracted -0.5%. The portfolio benefited from exposure to UK/Europe Electric Utilities (+0.5% due to our holdings in E.ON, Enel and Terna) and being underweight in Asia-Pacific Toll Roads (+0.2%), however, stock selection in European Airports and Communications was negative with Fraport and SES underperforming their sector averages.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2303-AIAFF-Monthly.pdfFebruary, 2023
In Australian dollar terms, the hedged portfolio fell 2.08% over the month of February, while the unhedged portfolio rose 0.55% (net of fees). The largest contributions to the absolute portfolio return came from Aena (+0.3%), Eiffage (+0.2%) and E.ON (+0.2%). The main detractors were SES (-0.9%), Norfolk Southern Corporation (-0.3%) and United Utilities Group (-0.3%). On a relative basis, the portfolio’s overweight to Europe (74% portfolio versus 17% benchmark) contributed 2.7% to returns, and the lower allocation to the North American sector (22% portfolio versus 66% benchmark) contributed 0.9%. The portfolio benefited from stock selection in North American Electric Utilities (+0.4% due to our holdings in Portland Electric and ALLETE) and underweight to North American Communications (+0.6%), which was more than offset by negative stock selection in European Communications (led by SES) and North American Railways (led by Norfolk Southern Corporation).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2302-AIAFF-Monthly.pdfJanuary, 2023
In Australian dollar terms, the hedged portfolio rose 7.93% over the month of January, while the unhedged portfolio rose 5.80% (net of fees). The largest contributions to the absolute portfolio return came from Fraport (+1.5%*), SES SA FDR (+1.2%*) and Enel (+1.0%*).
The main detractors were Allete (-0.1%*), Portland General Electric (-0.1%*) and Avangrid (-0.1%*). On a relative basis, the portfolio’s overweight to Europe (74% portfolio versus 16% benchmark) contributed 5.4% to returns, and the lower allocation to the North American sector (19% portfolio versus 67% benchmark) contributed 1.3%.
The portfolio benefited from an overweight to European Communications (+1.3%) and underweight to North American Electric Utilities (+1.1%). Our stock selection within European Electric Utilities, European Airports and US Electric Utilities was positive, with our largest holdings (Fraport, Enel, SES and Edison) all outperforming their sector averages.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2301-AIAFF-Monthly.pdfDecember, 2022
In Australian dollar terms, the hedged portfolio fell 4.27% over the month of December, while the unhedged portfolio fell 3.23% (net of fees). The largest contributions to the absolute portfolio return came from EON (+0.1%), Portland General Electric Company (+0.02%) and Avangrid (+0.02%). The main detractors were Aeroports de Paris (-0.7%), SES (-0.6%) and Terna (-0.5%). On a relative basis, the portfolio’s overweight to Europe (73% portfolio versus 15% benchmark) detracted -1.8% to returns, and the lower allocation to the North American sector (20% portfolio versus 69% benchmark) detracted -0.4%. The portfolio benefited from a lack of exposure to North American Pipelines and Storage assets (+0.4%) as well as an overweight to European Water Utilities (+0.2%). However stock selection in European Airports and Communications as well as US Electric Utilities was negative as our largest holdings (ADP, SES and Edison) all underperformed their sector average.
On a company level we would note the following key developments:
AENA (European Airports) launched the tender for the new duty-free contracts covering 27 airports across the Spanish network (c. 66,000sqm). The contracts have been restructured to 12 years with three annual extensions to incentivise store upgrades, the implementation of new technologies and digitalisation and will include both a minimum rental and variable component. The results of the tender are expected in July 2023. This tender forms part of a wider contract renegotiation program at AENA currently underway, which includes various key contracts, including cleaning, the F&B contracts at Madrid Airport and car rental.
SES (European Satellites) launched the first two satellites of its new ‘mPower’ generation. SES is planning to launch 11 mPower satellites over the next 18 months, joining the existing 20 O3b satellites which provide high-capacity data services to users in the aviation, cruise, maritime and telecommunication sectors. The primary driver for the development of mPower has been the growth in demand for the existing O3b network which has exceeded capacity in a number of geographic regions. The mPower satellites offer two important improvements; firstly each satellite has more than 10 times the capacity of the first generation of O3b, supporting high bandwidth applications at lower prices. Secondly, the mPower satellites have the capability to dynamically allocate capacity through steerable beams, this means that more band width can be deployed to demand locations with less ‘wasted’ system capacity. The development and launch of the mPower satellites has been delayed a number of times by the pandemic and so the successful implementation of the system over the next 12 months will very important for the development of the SES business.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2212-AIAFF-Monthly.pdfNovember, 2023
In Australian dollar terms, the hedged portfolio rose 6.22% over the month of November, while the unhedged portfolio increased 4.48% (net of fees). The largest contributions to the absolute portfolio return came from Enel (+1.1%*), Allete (+0.7%*) and United Utilities (+0.6%*). The main detractors were SES SA FDR (-0.3%*), Eutelsat Communications (-0.3%*) and PG&E Corporation (-0.2%*).
On a relative basis, the portfolio’s overweight to Europe (70% portfolio versus 15% benchmark) had a neutral effect on returns and the lower allocation to the North American sector (19% portfolio versus 69% benchmark) detracted -0.1%. We benefited from stock selection in European Electric Utilities (+0.7% due to our holdings in Enel, Terna and Hera), however, selection in communications held back performance (-0.9%).
On a company level we would note the following key developments during November:
* SSE (UK Electric Utility) announced it had agreed to sell a 25% stake in its electricity transmission grid business to Ontario Teachers’ Pension Plan Board for ~£1.5 billion. The minority stake sale is part of a strategic plan to grow the transmission business, with the proceeds being used to fund investments in renewable energy in parallel with the government’s net zero targets including the delivery of 50GW of offshore wind capacity by 2030.
October, 2022
In Australian dollar terms, the hedged portfolio rose 8.42% over the month of October, while the unhedged portfolio increased 10.38% (net of fees).
The largest contributions to the absolute portfolio return came from SES SA FDR (+1.4%), PG&E Corporation (+0.8%) and Eutelsat Communications (+0.7%). The main detractor was Avangrid (-0.1%). On a relative basis, the portfolio’s overweight to Europe (71% portfolio versus 19% benchmark )1 contributed 0.6% to returns and the lower allocation to the North American sector (21% portfolio versus 66% benchmark )1 contributed 0.1%. We also benefited from stock selection in European Communications (+1.5% due to our holdings in SES and Eutelsat), European Electric (+0.7% due to our holdings in Enel and Terna) and North American Electric Utilities (+1.2% with holdings in PG&E and Allete).
On a company level we would note the following key developments during October:
- Severn Trent (UK Water Utilities) and United Utilities (UK Water Utilities) will be entitled to receive £62.9 million and £24.1 million respectively via customer bills in the 2023-24 financial year for having outperformed their targets, whilst the industry regulator, Ofwat, has instructed 11 other water companies who missed their targets, many pollution related, to cut £150 million from customer bills over the same period. Although these rewards are in line with expectations, ATLAS notes that this highlights that even in a ‘tougher’ regulatory environment, good performing companies will be allowed to generate positive incentives. y Eiffage (European toll road) announced the acquisition of a 13.7% stake in Getlink from TCI, which adds to the 5.1% stake it acquired in late 2018.
- Eiffage will become Getlink’s largest shareholder, however, has announced no immediate plans to launch a tender offer. The acquisition allows Eiffage to diversify its concession portfolio and increase the average contract life, with the Getlink concession expires in 2086, giving long free cash flow visibility and increasing the average life of the concession portfolio to 29.2 years, from 22.4 years.
- AENA (European Airport) and ADP (European Airport) have both raised full year guidance, highlighting the continuation of the buoyant travel market heading into Q4, with ADP announcing traffic is expected to recover between 77%-83% of 2019 levels (up from 70-80% initially announced in Q1 2022 and 74%-84% announced in Q2). AENA is now estimating that traffic will be an estimated 85% of 2019 levels, which is above the upper end of the range announced in June 2022 (75%-85%) and significantly higher than the 68% guidance provided in Q1 2022. Further, AENA has announced the winter airline schedule (November to March inclusive) exceeds what was operated in the 2019/20 season, with +5.3% more seats being offered. Although medium term traffic trends remain uncertain due to fuel prices and lower economic growth, ATLAS notes that the current traffic strength represents a return of demand lost during Covid and therefore there is still additional demand, particularly from Asia, to be added before volumes revert to normal economic levels.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2210-AIAFF-Monthly.pdfAugust, 2022
In Australian dollar terms, the hedged portfolio fell 1.62% over the month of August, while the unhedged portfolio declined 0.99% (net of fees). The largest contributions to the absolute portfolio return came from Eutelsat Communications (+0.6%), PG&E Corporation (+0.3%) and Atlas Arteria (+0.1%). The main detractors were Enel (-0.3%), United Utilities (-0.3%) and SES SA FDR (-0.3%).
On a relative basis, the portfolio’s overweight to Europe (62% portfolio versus 19% benchmark) and our stock selection resulted in a neutral outcome relative to the benchmark. Across the portfolio positive contributions from our holdings in European Communications (+1.3%), North American Electric Utilities (+0.2%) and Australian toll roads (+0.2%) were offset by our selection in UK/European Electric Utilities (-0.1%) and European/UK Toll Roads (-0.1%).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/191071180.pdfJuly, 2022
In Australian dollar terms, the hedged portfolio returned 1.85% over the month of July,while the unhedged portfolio declined 0.83% (net of fees).
The largest contributions to the absolute portfolio return came from Aeroports de Paris SA (+0.8%), Getlink SE (+0.7%) and Norfolk Southern Corporation (+0.5%).
The main detractors were Eutelsat Communications (-1.4%), SES SA FDR (-0.9%) and Atlas Arteria (-0.2%). On a relative basis, the portfolio’s lower allocation to the North American sector (24% portfolio versus 65% benchmark) detracted 0.5% from returns. Our stock selection was a negative contributor across the portfolio driven by our selection in UK & European Communications (-3.6%) and UK & European Electric Utilities (-0.9%), offset with positive contributions from our holdings in European Airports (+0.4%) and North American Electric Utilities (+0.3%).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/190131652.pdfMay, 2022
In Australian dollar terms, the hedged portfolio returned 1.87% while the unhedged strategy returned 1.93% (net of fees) during the month of May. The largest contributions to the absolute portfolio return came from Avangrid (+0.5%), Consolidated Edison (+0.4%) and SES Global (+0.3%). The main detractors were Norfolk Southern (-0.3%), Enel (-0.1%) and PG&E (-0.1%).
On a relative basis, the portfolio’s overweight to Europe (55% portfolio versus 21% benchmark) detracted -0.4% from returns and the lower allocation to the North American sector (28% portfolio versus 64% benchmark) detracted -0.3%. Our stock selection was a positive across all regions with particular contributions from European communications (+0.9% due to our holding in SES) and European Airports (+0.1% with holdings in AENA, Fraport and ADP). This was slightly offset by selection in North American Railway (-0.3% due to our holding in Norfolk Southern)
AENA (European Airport): Following the earlier than anticipated relaxation of UK restrictions, AENA has seen a significant increase in UK traffic across the network, with expectations of summer capacity to be in line with 2019 (pre-COVID). On the non-regulated side, AENA also benefits from UK passengers now using duty-free (over duty-paid stores) following Brexit, which provide higher rental yields for the operator, combined with positive sentiments around ‘being on holiday’ which has improved passenger spend per head. This re-establishment of tourism in the UK capital since the relaxation and removal of restrictions also benefits Luton airport, which AENA holds 51% of. The concession, which ends in 2032 may be subject to an offer of extension in exchange for expansion plans to increase capacity from the current 18 million to 32 million, via the expansion of Terminal 1 and construction of Terminal 2
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/188030500.pdfMarch, 2022
In Australian dollar terms, the hedged portfolio returned 7.36% while the unhedged strategy returned 3.75% (net of fees) during the month of March. The largest contributions to the absolute portfolio return came from Edison International (+1.0%), Get link (+0.9%) and SES Global (+0.8%). There were no detractors to absolute performance.
On a relative basis, the portfolio’s overweight in Europe (where the The fund has 54% of its portfolio) compared with the stronger performing The North American sector (where the Fund has 26% of its portfolio) was a detraction. However, this was offset by stock selection in Europe supported by the Fund’s investments in Electric utilities and Airports as well as the Fund’s holdings in renewables.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/185963547-1.pdfJanuary, 2022
In Australian dollar terms, the hedged portfolio returned -2.37% while the unhedged strategy returned -0.52% (net of fees) during the month of January. The largest contributions to the absolute portfolio return came mainly from airports; Aeroport de Paris (+0.4%) and Aena (+0.1%) being the largest individual contributors to performance. Detractors to absolute performance were US utility Edison International (-0.7%) and Atlas Arteria (-0.5%) which has stakes in toll roads in France, the US and Germany.
On a relative basis, the portfolio’s better performance was helped by the preference for Europe (where the Fund has 55% of its portfolio) over the weaker performing North American (where the Fund has 26% of its portfolio) and Asia/Pacific (where the Fund has 14% of its portfolio); and especially the lack of exposure to North American Communication and Water assets. Stock selection helped in European airports and toll roads.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/184052607.pdfDecember, 2021
In Australian dollar terms, the hedged portfolio returned 6.12% while the unhedged strategy returned 4.55% (net of fees) during the month of December.
The largest contributions to the absolute portfolio return came mainly from transport and utility names; as shown by the largest four contributors: Getlink (+0.9%), Aeroport de Paris (+0.7%), Terna (+0.6%) and Allette (+0.6%). On a relative basis, performance was hindered by a preference for Europe (where the Fund has 55% of its portfolio) over the better performing North America (where the Fund has 27% of its portfolio) especially in North American Communication assets; and helped by a slightly lower exposure to Asia Pacific (where the Fund has 14% of its portfolio) and a lack of pipeline and storage exposure. Stock selection helped in European airports and European and Asia Pacific toll roads.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/182666463-1.pdfNovember, 2021
In Australian dollar terms, the hedged portfolio returned -1.61% while the unhedged strategy returned 1.72% (net of fees) during the month of November.
The largest contributions to the absolute portfolio return were more evenly spread this month with National Grid (+0.3%), Atlas Arteria (+0.3%) and Edison (+0.3%) all contributing while AdP (-0.8%), SES (-0.5%) and Aena (-0.4%) detracted. On a relative basis, the performance was helped by the relative overweight of European utilities and the lack of exposure to pipeline and storage. Stock selection in US utilities was also a material relative contribution. The Fund has a continued preference for Europe (where the Fund has 53% of its portfolio) over North America (where the Fund has 25% of its portfolio).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/181823597-1.pdfAugust, 2021
In Australian dollar terms, the hedged portfolio returned 2.69% while the unhedged strategy returned 2.96% (net of fees) during the month of August.
The largest contribution to the absolute portfolio return came from our holdings in electric utilities and communications, contributing a total of 1.1% and 1.0% of the total return, aided by Edison (+0.5%) SES (+0.4%) and Chorus (+0.3%). Atlas Arteria also contributed strongly (+0.7%) (all in local currency terms). On a relative basis, the continued preference for Europe (where ATLAS has 53% of its portfolio) over North America (where ATLAS has 25% of its portfolio) was a relative negative during the period, but this was partially offset by the positive stock selection in Europe generally and Asia/Pacific toll roads and communications.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/179472878.pdfJuly, 2021
In Australian dollar terms, the hedged portfolio returned 1.30% while the unhedged strategy returned 3.11% (net of fees) during the month of July.
The largest contribution to the absolute portfolio return came from the portfolio’s holdings in electric and water utilities, contributing a total of 1.7% and 0.5% of the total return, aided by Spark Infrastructure (+1.0%), Terna (+0.5%) and Severn Trent (0.5%) (all in local currency terms). On a relative basis, the preference for Europe (51% portfolio versus 17% benchmark) over North America (25% portfolio versus 66% benchmark) was a relative hinderance during the period partially offset by positive stock selection in regulated Asia Pacific utilities and European stocks.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/176282646.pdfJune, 2021
In Australian dollar terms, the hedged portfolio returned -0.30% while the unhedged strategy returned 0.46% (net of fees) during the month of June. The largest contribution to the absolute portfolio return came from holdings in toll roads and electric utilities, contributing a total of 0.5% of the total return, aided by Atlas Arteria (+0.3%), Edison International (+0.3%) and Terna (+0.2%) (all in local currency). On a relative basis, selection in Asia Pacific region and electric sector was a key benefit to the portfolio, offset by the lack of exposure to pipelines and storage and selection in communication towers.
There were three portfolio changes during the month of June. It was resolved to reduce Eutelsat (European satellite) to a 4.5% position and increase Getlink (European rail) to a 7.5% position. This was based on an increase in forecast returns for Getlink due to the sell off in European transport assets, as well as the higher risk profile of Eutelsat following its decision to invest in the Oneweb satellite constellation.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/174813867-1.pdfMay, 2021
In Australian dollar terms, the hedged portfolio returned 0.53% while the unhedged strategy returned 1.41% (net of fees) during the month of May. The largest contribution to the absolute portfolio return came from our holdings in airports, and electric utilities, contributing a total of 0.55% of the total return, aided by Aeroport de Paris (+0.35%), Red Electrica (+0.32%) and SSE (+0.22%). SES was also a good contributor (+0.32%). On a relative basis, our preference for Europe (where ATLAS has 51% of its portfolio) over North America (where ATLAS has 25% of its portfolio) and our stock selection in airports and electric utilities provided key benefits during May. This was partially offset by our lack of exposure to US pipelines and storage and US rail.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/173286568.pdfApril, 2021
In Australian dollar terms, the hedged portfolio returned 1.64% while the unhedged strategy returned 1.53% (net of fees) during the month of April. The largest contribution to the absolute portfolio return came from our holdings in electric, airport and water sectors, contributing 1.62% to the total return, aided by Aeroports de Paris (0.33%), Severn Trent (0.33%) and Allette (0.21%). On a relative basis, our stock selection in Asia Pacific electric was a benefit as was our lack of exposure to Asia Pacific rail. This was offset by our lack of exposure to US pipelines and storage and US communications and our stock selection in European regulated electric utilities and Asia Pacific toll roads. Geographically, continued low regional exposure to the USA (where ATLAS has 26% of its portfolio), detracted from overall performance.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/172354021.pdfDecember, 2020
The portfolio returned 1.55% (net of fees) in December versus the benchmark return of 0.43%. The total contribution to local returns from our equity holdings was 1.60%. The main contributors in the period were our holdings in SSE, Allete and Spark. Ausnet, Consolidated Edison and Pinnacle West were the main detractors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/163987799.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: PIM9253AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
http://www.pantribal.com.au/our-products/atlas-infrastructure-australian-feeder-fund/
https://www.atlasinfrastructure.com/portfolio-performance/
fund_features:
ATLAS Infrastructure Australian Feeder Unhedged aims to provide investors with exposure to a selection of high quality infrastructure equities. The portfolio will be invested in OECD countries only and is a high conviction strategy focussed on investing in infrastructure securities which provide the optimal balance of return and risk. The fund aims to monitor and manage carbon and climate change risk exposures within set tolerances. The investment strategy of the Fund is to invest in the Underlying Fund which will invest in a moderately diversified portfolio of global infrastructure equity securities listed on stock exchanges in developed nations. The portfolio of equities will be issued by, or provide exposure to, global companies that own or operate under concession, high quality essential infrastructure assets in various sectors, including electric, gas and water utilities, transport, communications and community and social infrastructure. Portfolio companies will be selected from those that ATLAS UK considers to offer the best potential for a combination of capital appreciation and income over the medium to longer term whilst minimising risk of loss to investors.
structure: Managed Fund