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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FirstState Global Infrastructure's top ten holdings
| Vinci | 6.5% |
| Vopak | 4.4% |
| Atlantia SPA | 4.2% |
| PPL Corp | 3.9% |
| GDF Suez | 3.7% |
| National Grid | 3.6% |
| Central Japan Railway | 3.5% |
| E.On AG | 3.5% |
| Abertis Infraestructureas | 3.1% |
| SES Global | 3% |
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