Fund of the week: High, reliable yields from infrastructure

As governments attempt to rescue their ailing economies through large capital infrastructure projects, the companies that win these contracts can offer attractive investment opportunities. Here's one global infrastructure fund that has beaten all its rivals.

In these inflationary times, the world of infrastructure offers some enticing opportunities for investors. Companies that operate in this space which can cover any major capital project, whether building a road, hospital or prison tend to benefit from predictable earnings and strong pricing power. This means that investors usually get a high, reliable yield.

One of the best ways in is the First State Global Listed Infrastructure Fund, run by Peter Meany. This is one of only three open-ended (unit-trust style) funds focused on infrastructure investments. Its long-term performance has beaten both of its competitors. It also consistently outperforms its benchmark, the UBS Global Infrastructure & Utilities 50-50 Index, with a 28.3% return over the last three years and a yield of about 3%.

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Vinci6.5%
Vopak4.4%
Atlantia SPA4.2%
PPL Corp3.9%
GDF Suez3.7%
National Grid3.6%
Central Japan Railway3.5%
E.On AG3.5%
Abertis Infraestructureas3.1%
SES Global3%
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