The Fund is managed by 4D Infrastructure, a boutique asset manager established in partnership with Bennelong Funds Management in 2015, which invests in listed infrastructure companies globally.
Jonas Daly, Bennelong’s head of retail investment sales, said the Fund has delivered strong returns for investors since its inception in March 2016.
“This rating highlights the growing interest in infrastructure as an investment opportunity,” said Jonas.
“4D’s approach – investing in quality businesses that are trading below fair value, taken from a universe of listed infrastructure companies all over the world – offers investors access to defensive fundamentals, with lower volatility of earnings and a higher yield relative to general equities.”
Over the 12 months to 29 February 2020, the Fund returned 19.43 per cent (after fees) compared to 7.10 per cent for its benchmark, the OECD G20 Inflation Index +5.5%.
In its report, Zenith noted that its “conviction in the Fund is based on the consistent investment process and strong focus around country risk assessments which we feel is a natural advantage when investing in emerging markets”.
“Given that the Fund may invest up to 40% of the portfolio in emerging markets, Zenith believes that this stringent focus on country risk as an embedded part of the process is a strong feature of the Fund.”
It also said: “Zenith holds a positive view of 4D's overall portfolio construction process, which combines both macroeconomic (through country risk assessment) and fundamental (through stock selection) inputs.”
“Zenith believes 4D employs a structured security selection process, which seeks to mitigate risk throughout the overall process.”
In the report, Zenith also commented on the experience of the business’s founders, chief investment officer & global portfolio manager Sarah Shaw and global equity strategist Greg Goodsell.
“In Zenith's opinion, Shaw's breadth of experience provides her with strong perspectives on global listed infrastructure, particularly in emerging markets which is a critical aspect for the Fund given its strategy.”
“Zenith believes that Goodsell's combination of skills as an equity market strategist and his infrastructure experience makes him a highly qualified asset to the team and is highly suited to their investment process and ethos.”
In addition to its rating and strong performance, the Fund was recently added to the BT Wrap, Super and Panorama platforms, further consolidating its position with existing platforms including Hub24, Macquarie Wrap and Netwealth. The Fund is also rated ‘Superior’ by SQM and ‘Investment Grade’ by Lonsec.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 26 March 2020) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines
The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
The Lonsec Rating (assigned April 2019) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold 4D Infrastructure’s product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.lonsecresearch.com.au/research-solutions/our-ratings