Fund of the week: a simple infrastructure play
There aren't many specialist infrastructure funds around. This one focuses on Europe, the US and Japan, investing in large-scale capital projects.
There aren't many specialist infrastructure funds around. But of the few there are, "my favourite is First State Global Listed Infrastructure Fund", Ben Yearsley of Hargreaves Lansdown tells The Independent. The £90m fund is run by Peter Meany, an economics graduate from Australia's Macquarie University.
The fund, which was launched in October 2007, focuses on the developed world, with more than 90% of its assets invested in Europe, the US and Japan. The aim is to invest in large-scale capital projects. With a focus on firms that provide essential services, such as ports, toll roads, utilities, electricity and water, the stimulus measures being taken by governments make the fund "a solid defensive play", says Andy Parson at the Share Centre in Investors Chronicle.
Global infrastructure companies have been "resilient" in the face of a slowing global economy, Meany tells The Australian. Forecasts for the sector have been downgraded by 5%, against 30% for the broader market. "This generally reflects the essential demand for services like electricity, water and commuter travel; the ability of monopoly assets to increase prices; and good cost control."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Around 19% of the portfolio is invested in toll road operators, such as Vinci and Atlantia. Meany's main focus is firms with solid balance sheets and forward order books. It's a pretty cautious stance, but Meany likes it that way. "Keeping it simple is one of Mr Meany's key criteria at present: companies with complex balance sheets that are difficult to understand should probably be avoided", says Yearsley. The fund currently yields 4.29%.
Contact: 020-7332 6500.
table.ben-table table { border: 3px solid #2b1083;font: 0.928em/1.23em verdana, arial, sans-serif;}
th { background: #2b1083; padding: 10px 5px;color: white;font-weight: bold;text-align: center;border-left: 1px solid #a6a6c9;}th.first { border-left: 0; padding: 5px 2px;text-align: left;}
tr {background: #fff;}
tr.alt {background: #f6f5f9; }
td { padding: 5px 2px;text-align: center;border-left: 1px solid #a6a6c9;color: #000;vertical-align: center;}td.alt { background-color: #f6f5f9; }td.bold { font-weight: bold; }td.first { border-left: 0; text-align: left;}
First State Global Listed Infrastructure top ten holdings
Vinci | 7.2 |
American Tower Corp | 6.3 |
Abertis Infraestructuras | 5.2 |
Koninklijke Vopak | 4.6 |
SES Global | 4.6 |
Central Japan Railway Co | 4.6 |
E.ON AG | 4.2 |
GDF Suez | 3.6 |
Atlantia Spa | 3.3 |
Crown Castle International Corp | 3.0 |
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
How ‘Bed & ISA’ could save you £15,000 over a decade
Moving your investments into a tax-free wrapper through ‘Bed & ISA’ transactions could save you thousands over the long run by cutting your tax bill
By Katie Williams Published
-
House prices hit record high, says Halifax
UK house prices rose 3.9% over the past year, with a typical property now costing £293,999. We look at which regions are seeing the strongest growth, and whether the rally in house prices will continue next year
By Ruth Emery Published