Strong returns for infrastructure
The infrastructure sector has continued to produce strong returns with the S&P Global Infrastructure Index returning 19.9 per cent to 30 April, according to a Zenith report.
The research house's "2015 Infrastructure Sector Review" found despite investors regarding the sector as a relatively defensive equity asset class, it has still improves a portfolio's overall characteristics.
Zenith's senior investment analyst, Jonathan Baird, said the overall performance of listed infrastructure managers on Zenith's approved product list was strong, with the majority of rated managers outperforming its assigned benchmark.
The report found unhedged strategies benefited from currency movements, with the AMP Global Infrastructure Securities Fund (Unhedged) exhibiting the strongest unhedged performance, returning 32.6 per cent per annum.
Among the hedged, for the second year, the Lazard Global Listed Infrastructure Fund produced the highest level of outperformance, with returns of 24.3 per cent per annum.
"It was particularly apparent that currency movements once again provided a real tailwind for unhedged strategies versus hedged strategies," Baird said.
"Zenith has continued to see significant growth in funds under management (FUM) across our rated managers… The increase in FUM has also resulted in a corresponding increase in investment teams resourcing for many of these funds."
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.