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.
In its report, Lonsec said: “We believe that the integrated ‘top-down’, ‘bottom- up’ approach put forward by the Manager is solid and acknowledges most key factors when assessing an infrastructure stock. In particular, Lonsec notes the qualitative aspects of the framework including coverage of corporate governance, the regulatory regime, and political risk.”
It also noted: “The Fund’s point of difference from many of its peers is that it can have a large exposure (up to 40%) to emerging markets. This allows the Fund to have a truly global portfolio and helps to diversify away some of the high concentration risk seen in infrastructure funds. It also allows the Fund to be more selective of the infrastructure stocks that they choose to invest in.”
Sarah Shaw, 4D’s chief investment officer and global portfolio manager, said the upgraded rating highlights the strength and success of 4D’s investment approach.
“This rating comes at a time of significant opportunity for 4D and infrastructure investors who can move quickly and take advantage of market events,” she said.
“The COVID-19 pandemic has cut a swathe through global equity markets, and listed infrastructure hasn’t been immune to this.
“But infrastructure is a very long duration asset. Once we move past the worst impacts of the virus and the world’s economy returns to a more stable environment, infrastructure in all its forms will be integral to the global economic recovery and returning society to a ‘new normal’.
“We believe global infrastructure will be fundamental to economic growth, and asset values will respond accordingly.”
The Fund was also highly commended in the recent Money Management Fund Manager of the Year Awards in the Global Infrastructure category.
It offers investors access to a defensive asset class, with higher visibility of earnings and lower volatility compared to general equities, and a higher dividend yield.
Since inception in 2016, the Fund has returned 9.11 per cent (after fees) compared to 7.03 per cent for its benchmark of the OECD G20 Inflation Index + 5.5 per cent (figures as at 31 July 2020).
The Lonsec Rating (assigned August 2020) 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
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