September, 2023
Listed infrastructure traded down 7.3% (AUD, hedged) in a challenging third quarter. Rising treasury yields and higher cost of capital put pressure on equity returns as central bank decisions and macro datapoints continue to be evolving factors. Emerging Markets was the best performing region in 3Q trading 1.7% (local) lower. The U.K. followed behind and outperformed global infrastructure. Asia Pacific and Continental Europe were effectively inline for the quarter. The Americas were the biggest laggards. The sharp rise in treasury yields globally put pressure on equity returns as capital markets have showed signs of more tightness. Crude oil trended higher and reached $90/barrel. Natural gas remains at lower levels compared to the start of the year but has gradually shifted higher in the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/206334750.pdfAugust, 2023
The Fund decreased 4.5% for the month, slightly ahead of the benchmark.
The Fund’s modest outperformance resulted from the positive impact of sector allocation, partially offset by negative stock selection. Sector allocation impact was most positive in Continental Europe. All other regions produced small positive sector allocation impact, except Emerging Markets, where our underweight positioning to that outperforming region was a drag on performance. Stock selection was negative across all regions except Developed Asia.
Communications stock selection was neutral overall, with strength in data center holdings offset by weakness across most tower stocks. Towers in Europe and the Americas modestly detracted this month.
Transportation stocks had the largest positive impact on relative performance this month, largely driven by sector allocation impacts in Europe and in Asia, where overweight exposure to passenger rail in Japan and to transportation in Europe generally contributed. Rail stock selection in Japan was also a contributor. Stock picking in toll roads in Australia contributed, but weakness among out-of-index toll road stocks in Europe detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/205035611.pdfJuly, 2023
The Fund increased 0.77% for the month, trailing the benchmark.
The Fund’s negative relative performance resulted from negative sector allocation despite positive stock selection.
Stock picking was positive across most regions and sectors. Sector allocation was more broadly negative across regions and sectors including an underweight exposure to Emerging Markets, which was a drag as the region outperformed.
Communications stock selection was again positive, with U.S. data center operator Equinix the primary driver.
Continued fundamental tailwinds from data centers were supportive this month. Towers in Europe modestly detracted this month, coinciding with weakness in Europe generally.
Transportation stocks had mixed results across sub-sectors and regions. Rail had a neutral impact, with contribution from stock selection in Americas rail offset by modest detraction from Japan passenger rails where stock selection and sector allocation detracted. Stock picking in toll roads contributed with strong contributions from outof-index toll road stocks in Europe, including Vinci and Eiffage, and Australia toll road picks that outperformed airport stocks globally.
Global utility impacts were a modest drag overall, with weak stock selection and sector allocation overall. Europe and the Americas had neutral impacts, with positive stock selection offset by detracting sector allocation in the region. Stock selection impact in the U.K. detracted, driven by underperformance of regulated utility SSE.
Midstream stock selection was a bright spot with contributions from U.S. stock picks like Cheniere Energy and Targa Resources that traded well, but also a contribution from not holding a position in TC Energy, the worst performing midstream stock in July
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/203893923.pdfJune, 2023
The Fund trailed the benchmark for the month.
The Fund’s modestly underperformed in June as stock selection and sector allocation decisions each modestly detracted from relative performance. Stock selection in the Americas was the largest relative contributor for the month; however, this was more than offset by sub-par stock selection in Asia and Europe. In the Americas, positioning in the rails sector was the top contributor for the month, more than offsetting a modest drag from the midstream sector. In Europe, favorable positioning in the utilities sector was more than offset by positioning in the transportation and communication sectors. In Asia, positioning in utilities accounted for most of the relative shortfall.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/202951778.pdfMay, 2023
The Fund decreased -4.60% in May, in line with the index.
The Fund’s modestly negative relative performance resulted from positive sector allocation impacts which was more than offset by negative stock selection. Sector allocation was most positive in Europe, while Emerging Markets was a modest drag. Positive stock picking across communications was more than offset by negative stock picking in utilities and transportation.
Communications was a bright spot for stock selection globally, with continued strength from NextDC in Australia and strong performance from Equinix in the U.S. as sentiment for data centers surged amid enthusiasm for artificial intelligence. Towers in Europe outperformed other sectors in that region.
Transportation stocks globally had a mixed impact. Rail positioning was beneficial with a positive impact from Japan partially offset by underweight exposure to North American railroads. Toll road stock picks, especially in Europe, were detractors.
Global utility impacts were a drag overall, with weak stock selection across regions, despite some strength in contracted power and nuclear utility exposure within the Americas.
Weakness in European integrated utility positions also hurt relative performance. Underweight positioning in Japan utilities detracted as the sector was one of the few areas of positive absolute returns.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/201437461.pdfMarch, 2023
The Fund performed in-line with the benchmark for the month, up 2.30%.
The Fund’s performance was in-line with the benchmark as modest outperformance from stock selection was essentially offset by sector allocation decisions. Stock selection in the Americas was positive as portfolio holdings across all sectors added value for the month. In Asia, an overweight to the outperforming rails sector helped the region outperform for the month. In Europe, positioning on the Continent and in the U.K. benefited performance as stock selection and sector allocation were positive. Meanwhile, an underweight to the outperforming emerging markets detracted from relative performance during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-19.pdfFebruary, 2023
The Fund declined 3.00% in February, ahead of the index return.
The Fund’s outperformance this month was driven by strong stock selection and modest contribution from sector allocation. Stock selection was most positive from global transports and communications. Sector allocation benefitted from positioning in global transports and utilities, particularly those in Europe.
Transportation was the biggest contributor of relative performance in February. Positive contribution from toll road stock picks in Europe and Asia, airports within Europe and Mexico, and from underweight underperforming North American railroad stocks were all additive.
Communications contributed positively during the month which was due to positive stock selection slightly offset by negative sector allocation from U.S. exposure. However, data center holdings Equinix (U.S.) and NextDC (Australia) and European tower operator Inwit were strong performers and key contributors to relative performance.
Midstream also contributed positively with a positive contribution from stock selection. Cheniere Energy experienced some recovery in the month, posting positive returns when most midstream stocks were down mid-single digits on the month.
Utilities globally were a modest drag on stock selection overall, with positive impact from stock selection in China gas utilities and European holdings offset by modest weakness in North America and Asia-Pacific.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-18.pdfJanuary, 2023
The Fund increased 2.83% in January, ahead of the index return. The Fund’s outperformance this month was driven by sector allocation while stock selection was a modest headwind to open the year. Continental Europe was the main contributing factor to the month’s alpha, and it was the top returning region from an absolute basis.
The Fund’s overweight positioning in Europe favored returns as the region had each sector outperform global infrastructure on the back of the broader European market rebound. Sector allocation was also meaningfully positive in North America, with strength in communications the biggest contributor. Stock selection had a negative impact overall, with strong performance of airport stocks in Europe the biggest drag as we are underweight, partially offset by positive impact of toll road exposure there and airport exposure elsewhere.
Utilities in the Americas were a drag on stock selection as well, partially offset by strength in Emerging Market utilities with exposure to China. Midstream was a modest detractor from relative performance as stock selection lagged due to names underperforming amidst challenges in the natural gas market. Communications made a large positive contribution this month, with strength across the globe. Data center operator Equinix was again a leader in the U.S., while Cellnex in Europe was the best performing tower stock globally, benefiting from news reports of a potential takeout bid being considered by American Tower and Brookfield.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-17.pdfDecember, 2022
The Fund was down -3.44% for the month, trailing the index return. Stock selection and sector allocation were both modestly negative for the month. Positive relative performance in Europe was offset by performance in the Americas and Asia. Meanwhile, positioning in the emerging markets was flat for the month. In the Americas, relative underperformance was due to positioning in the utilities sector, which overshadowed the benefit of positive positioning in the rail sector. In Asia, positioning in the utilities sector was the major source of underperformance, offsetting the value added from positioning in the rail sector. Europe was the bright spot for the month, led by positioning in the transportation, utilities and communication sectors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-16.pdfNovember, 2022
The Fund increased 6.97% in November, ahead of the index return. The Fund’s outperformance this month was due to strong stock selection partially offset by weaker sector allocation. Stock selection was positive in nearly every region, but it was most positive in Americas and in Emerging Markets, especially in utilities in both regions. Sector allocation was positive in Emerging Markets, but negative in other regions and most negative in Continental Europe, where overweight to communications was a drag.
Stock selection in utilities globally was a highlight again this month. Utilities in the Fund with exposure to recent energy security and decarbonization legislation continued to benefit, including American Electric Power and AES Corp. In Emerging Markets, China utilities were sharply higher (35%+ each) in a bounce back from a weaker October. In Europe, integrated utility and renewable development leader Enel contributed with double-digit returns. In midstream, most of the Fund’s holdings were positive, but the group underperformed broader infrastructure. Positive return for midstream despite weaker oil prices and strong yearto-date performance reflects stability of cash flows and improved balance sheets in recent years.
Global transports had a small negative impact on relative performance this month, with underweight exposure to outperforming Americas rails a drag, along with overweight exposure to Europe transportation stocks that underperformed. Developed Asia was a bright spot in transportation where Australia-listed toll road operators outperformed, helping to offset negative impact of Japan passenger rails. Communications stocks were positive contributors driven by strong stock selection, mostly from data center operators, including Equinix in the U.S. and NextDC in Australia, benefiting from less interest rate pressure and confirmation of secular demand drivers. Positive stock selection was partially offset by sector allocation, mostly from Europe.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-15.pdfOctober, 2022
The Fund increased 3.37% in October, ahead of the index return. The Fund benefited from positive sector allocation, while stock selection had a neutral impact. Positive sector allocation was led by an overweight to Europe, the best performing region. Negative impact from an underweight to emerging markets offset some of our positive allocation. Stock selection was most positive in the Americas. Stock selection in utilities globally was a highlight this month. Utilities in the Fund with exposure to recent energy security and decarbonization legislation continued to benefit, including standout performers AES Corp. and Constellation Energy. In Europe, integrated utility and renewable development leader Enel contributed positively. In midstream, outperformance of U.S. companies has benefited the portfolio, including Targa, which was added to the S&P 500 this month. Midstream 3Q results thus far have been positive despite weaker natural gas and NGL prices. Global transports had a positive impact on relative performance this month, with contributions from stock selection from out-of-index European toll road stocks and the Fund’s sole European airport holding Aena. Australian toll road operators and Japan rail operators were positive performers as well, offsetting modest negative impact from underweight to rails in the Americas. Communications stocks were mixed, with a bounce back in Cellnex on recovery in European stocks and steady interest rates, while overweight to U.S. communications stocks was a drag.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-14.pdfSeptember, 2022
The Fund decreased 11.40% in September, lagging the index return. The Fund’s relative underperformance for the month was due to sector allocation decisions as stock selection was flat. The primary driver of the underperformance for the month was the Fund’s underweight to the Emerging Markets region, which was the best performing region finishing down -6.2%.
Emerging Markets continue to be atypically and relatively resilient during a period of market stress and the strong dollar. Stock selection was positive in the Americas, where midstream and utilities shined. This, however, was offset by negative stock selection Asia, where Australian toll roads company Atlas Arteria underperformed, surprising the market with a large toll road acquisition and subsequent equity offering.
In Europe, positioning in the communications sector was the top detractor for the month as an overweight to underperforming European communications stocks was a drag on relative performance. The utilities sector was impacted by inflation concerns for renewable developers and rising power costs across Europe were headwinds to core integrated utility positions.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-13.pdfAugust, 2022
The Fund decreased 1.34% in August, underperforming the index return.
The Fund had positive stock selection this month, which was more than offset by negative sector allocation. Positive stock selection was driven by Americas where utilities and midstream stock picking shined. Emerging markets were the largest source of negative sector allocation as it was the was the only positive region in the month and the fund remains underweight. Continental Europe and the U.K. were a drag on relative performance as well. The passing of the Inflation Reduction Act in the U.S. was positive for utilities in the Fund exposed to renewable development. AES Corp. and Constellation Energy were standout contributors to stock selection as both are leading clean energy companies within the region.
However, utilities in other regions posted less attractive returns and contributed little by way of stock picking. In midstream, positive returns from Cheniere Energy and no position in TC Energy, which sharply underperformed, were the primary drivers of positive stock selection from the group while sector allocation was neutral.
Global transports had a mixed impact on relative performance this month, with strong stock selection in toll roads and passenger rail in Asia more than offset by weakness in transportation stocks in Europe and underweight Emerging Markets transportation stocks that outperformed. Communications stocks were a drag during the month as the stocks underperformed globally. The Fund’s overweight positions in Europe and Asia were the largest headwinds as they gave back gains seen a month earlier amidst a rapid rising rate environment.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-12.pdfJuly, 2022
The Fund increased 5.74% in July, outperforming the index return.
The Fund’s outperformance was due to stock selection and sector allocation. Stock selection was positive across all sectors, led by midstream and communications. Sector allocation was strongest from utilities and communications. Emerging Markets contributed positively during the month as they underperformed and the Fund is underweight. Communications was the strongest source of relative performance in July, contributing positively to stock picking and sector allocation. This result was due to overweight positioning to towers in Europe and data centers in Asia. Midstream was a strong source of alpha in July almost entirely due to stock selection. Cheniere Energy was up 12.5% helped by ongoing strength in the LNG market. Targa Resources was up 16.5% as a beneficiary of current market dynamics Global utilities were additive largely due to an underweight to underperforming Asia-based utilities and positive stock selection in Europe. Constellation Energy, the largest nuclear operator and producer of carbon-free power in the U.S., was also a stand-out contributor and a beneficiary of the proposed Inflation Reduction Act.
Global transports were a drag due to unfavorable sector allocation across regions. Positive stock selection from the group primarily came via European positioning where toll road holdings in out-of-index Vinci and Eiffage was favorable. This was partially offset by a drag in Asia based transports.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-11.pdfMarch, 2022
The Fund increased 6.02% during the month, underperforming the index return.
The Fund’s underperformance was the result of sub-par stock selection within the Utility and Transportation sectors in Continental Europe. The portfolio has exposure to integrated utilities on the Continent, including ENGIE and Enel. Investors remained concerned this sector may face political backlash due to the rising power market/high energy prices for consumers in the region. ENGIE sold off sharply due to their exposure to Russia. ENGIE has a loan on the NordStream II gas pipeline that is expected to be written off. The company also procures 30% of its natural gas from Russia that it distributes to its customers in France. This worked to offset positive stock selection and sector allocation decision in the Americas and Asia-Pacific regions.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-10.pdfMarch, 2022
The Fund increased 0.37% in February, outperforming the index return.
Relative return was positive in February, with strong stock selection and a positive sector allocation effect. Stock selection was most additive in the U.S., helped by a large contribution from midstream and utilities. Sector allocation was also positive, primarily helped by weightings to global communications and transport around the globe.
Utilities added to alpha in February, mostly the result of superior stock selection. Key overweight holdings that contributed positively included ENGIE (France), American Electric Power (U.S.), and National Grid (U.K.).
Midstream holdings were positive contributors to stock selection. Strong performance by liquefied natural gas (LNG) export terminal operator Cheniere Energy drove the outperformance. Cheniere has a unique set of assets that positions it well to provide Europe with an alternative source of natural gas at a time when decreasing reliance on Russian-sourced gas is of the utmost importance.
In transport, toll road and airport stocks were negative contributors this month. Key holdings with European assets including Vinci, Eiffage, and Ferrovial, underperformed and detracted after being strong contributors in the prior month. America's rails had minimal impact on relative performance. Passenger rail stocks in Japan owned by the Fund outperformed.
Underweight exposure to the U.S. communications sector benefited relative performance as the sector significantly underperformed and offset modest detraction from stock selection within the group.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-9.pdfJanuary, 2022
The Fund decreased 2.7% in January, in-line with the index return. Relative return was neutral in January, with significant positive stock selection offset by negative sector allocation effect. Stock selection impact was most additive in the utilities and transportation sectors. A drag from sector allocation was primarily driven by an overweight to underperforming European communications stocks and an underweight to emerging markets, which outperformed. Utilities added to alpha in January entirely the result of superior stock selection, especially in Europe and North America. Key overweight holdings globally that contributed positively include ENGIE (France), American Electric Power (U.S.), Exelon (U.S.), Guangdong Investment (H.K.) and National Grid (U.K.).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-9.pdfDecember, 2021
The Fund increased 5.75% in December, trailing the Index return by -68 bps.
Although absolute returns were quite strong for the month, relative return lagged as the result of sub-par stock selection and sector allocation. Positive relative performance in Asia, the Emerging Markets and the U.K. was more than offset by underperformance within the Americas and Continental Europe. In the Americas, positioning in the Midstream/Pipelines and Utilities sectors was the source of the relative shortfall for the month. In Continental Europe, holdings in the Utilities sector and an overweight to the underperforming Communication sector hurt relative performance. In Asia, stock selection was strong across all sectors while sector allocation was flat. Meanwhile, in the U.K. stock selection and sector allocation added value during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-8.pdfNovember, 2021
The Fund declined 2.39% in November, underperforming the Index return by 10bps. Relative return was negative in November, driven by negative stock selection, partially offset by favorable sector allocation. Negative stock selection was almost entirely attributable to utilities in Europe and North America, with other sectors generally contributing positively to stock selection. Sector allocation benefitted the most from global utility positioning, notably in Continental Europe, while being somewhat offset by positioning across global transports.
Integrated utilities in Continental Europe with exposure to the decarbonization thematic reverted to weakness this month, including key out-of-index holdings Enel (Italy) and EDP (Portugal). Enel was a notable underperformer that was weak into a Capital Markets Day (CMD) only to see some recovery before a more precipitous decline during the volatility surge into month end surrounding the Omicron variant. Similar thematic exposure within U.S. utilities had more mixed outcomes this month, with divergent contributions from key out-of-index holdings Exelon (positive) and AES (negative).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-7.pdfOctober, 2021
The Fund rose 4.36% in October, outperforming the Index return by 130bps.
Relative return rebounded in October, with a large contribution from stock selection and a smaller positive contribution from sector allocation. Stock selection benefit was primarily from utilities in the U.S. and Europe. Modest positive sector allocation was driven primarily by underweight exposure to the emerging markets overall and to utilities in Asia-Pacific.
Integrated utilities in Continental Europe with positive exposure to the decarbonization thematic rebounded in October, including key out-of-index holdings Enel (Italy), ENGIE (France) and EDP (Portugal). Energy market concerns and related political risk abated this month, and renewable development was supported by well-publicized global climate meetings.
Similar positive decarbonization themes helped contribute to U.S. utility stock selection, with contributions from key out-of-index holdings Exelon and AES, in addition to active positions in other key holdings FirstEnergy, among others. Midstream holdings were positive contributors, with strength in natural gas pipeline stocks.
Transportation was mixed across the globe. European toll road exposure outperformed airports in the region, adding to stock selection. North American rail stock impact was muted given broad strength across that group. Emerging markets transportation was a positive contributor to relative performance due to Mexican holdings. Australia transportation stocks were negative in October, and the Fund benefited from underweight exposure to Transurban, balanced by overweight exposure to Atlas Arteria.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-6.pdfSeptember, 2021
The Fund decreased by -0.04% in 3Q 2021,
underperforming the Index return by 83bps. In a reversal from 2Q, sector allocation was only a modest positive contributor to relative performance this quarter, and that was more than offset by poor stock selection. Stock selection impact was primarily from Continental Europe due to poor stock picking in utilities and toll road stocks. The U.S. was a bright spot for stock selection, with strength in midstream and railroads.
Midstream was a key contributor to stock selection in the quarter, driven primarily by the Fund’s largest midstream holding Cheniere Energy. Cheniere owns and operates LNG export facilities and while the company has long-term contracts that is not affected by commodity pricing, the spike in global LNG prices signals demand for their future projects.
Utilities stock selection in Europe was the biggest detractor this month, especially key out-of-index, like Enel (Italy), ENGIE (France), and Iberdrola (Spain). Energy market concerns played a notable role in the underperformance of these stocks which was worsened by growing fears of negative political interference in response to the anticipated sharp increase in power prices.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-5.pdfAugust, 2021
The Fund rose 2.71% in August, outperforming the Index return. Strong stock selection carried performance while weaker sector allocation somewhat offset relative gains. Stock selection was most positive in Continental Europe due to favorable stock picking in utilities there. Developed Asia and the U.S. also had positive stock selection, due to strength in transports in both regions. Sector allocation impact was modest in most regions, with underweight exposure to Emerging Markets the biggest detractor as that region outperformed.
Utilities stock selection contributed positively this month, especially in Europe and the U.S. Key out-of-index integrated utility holdings ENGIE (France), EDP (Portugal), Iberdrola (Spain) and Exelon (U.S.) all outperformed this month helping drive positive stock selection from the group. In the U.S., utility stock selection also benefited from underweight exposure to some of the large, regulated utilities that underperformed this month.
Listed infrastructure traded up 2.3% (AUD, Hedged) in August. All regions were positive, with Emerging Markets and the U.S. outperforming other regions across the globe. No dominant themes emerged in August resulting in mixed sector returns globally. Global sovereign yields drifted higher from multi-year lows in recent months. Crude oil declined while natural gas prices continued to surge globally.
In addition to attractive valuation, the fundamental outlook for infrastructure stocks is strong, with resilient and growing cash flows expected to continue. Growth is supported by the ongoing need to invest in aging infrastructure and the secular trends of decarbonization and digital transformation. Accelerating demand for infrastructure investment, combined with accommodative policy and global economic rebound post-pandemic will drive dividend growth CAGR of more than 8% for the next 3 years.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-4.pdfJuly, 2021
The Fund rose 1.24% in July, underperforming the Index return. Stock selection detracted from relative performance this month, while sector allocation was positive. Stock selection was negative across most regions, and sector allocation was positive in Emerging Markets and in Continental Europe.
Midstream positioning helped stock selection and sector allocation this month. The Fund’s underweight benefited performance as the sector was negative for the month. Our core, defensive holdings within that group outperformed, while key holding Pembina Pipeline benefited from termination of a merger announcement that had weighed on the stock.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-3.pdfJune, 2021
The Fund rose 4.20% in 2Q21, outperforming the Index return by 174 basis points. Both stock selection and sector allocation contributed to the positive relative performance. Sector allocation was positive across all regions while stock selection was positive in all regions except Continental Europe.
Communications positioning helped both stock selection and sector allocation during the quarter. The companies benefited from underlying strength in fundamentals, strong balance sheets following capital raising activity and a more sedate interest rate environment.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure-2.pdfMay, 2021
Outperformance in the month was due to both stock selection and sector allocation. All developed regions were positive contributors to relative performance while limited exposure to Emerging Markets detracted as the region outperformed global infrastructure. An overweight to utilities in Continental Europe and underweight to utilities in U.S. were the two largest positive contributors to sector allocation.
Stock selection was strongest in the Americas, positive across all sectors but strongest is midstream and utilities. Within midstream, the biggest contributors to outperformance were overweight exposure to Cheniere Energy and underweight to Enbridge. Cheniere reported strong 1Q results and benefitted from strength in the global LNG market. Enbridge lagged as investor focus remains more on cyclical midstream stocks with more exposure to the recovery in energy prices and demand. Utilities-based stock picking benefited from a number of key holdings including Alliant Energy (midwestern regulated), Exelon (integrated with clean energy) and
FirstEnegy (Ohio based regulated) while avoiding declines in underperforming PG&E (California regulated) which was down more than 10% in the month as the stock continues to exhibit volatility in the aftermath of its bankruptcy emergence in 2020.
December, 2020
After fees and expenses, the portfolio increased by 0.82% over the month, outperforming its benchmark by 55bps. The Fund had positive stock selection in the Utilities sector in each region, including Emerging Markets. Stock selection in U.S. Utilities was the tope contributor to relative performance for the month. Stock selection in Continental European Utilities also added value for the month. Meanwhile, an underweight allocation to the outperforming Emerging Markets region was a drag on relative performance for the month, but this underweight has added value for the year.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_clarion_global_infrastructure.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: UBS0064AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
Note:
PDF => Portfolio review
https://investmentcentre.moneymanagement.com.au/factsheets/mi/nawl/ubs-clarion-global-infrastructure-securities-fund
fund_features:
UBS Clarion Global Infrastructure Securities Fund aims to provide a total return consisting of capital growth and income that outperforms (after management costs) the FTSE Global Core Infrastructure 50/50 Index (Net) AUD Hedged over rolling three year periods. The Fund is an actively managed fund investing in globally listed infrastructure securities across a range of geographic regions and infrastructure sectors which may include utilities, transportation, energy infrastructure and communication infrastructure.
structure: Managed Fund