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
The use of total portfolio approaches by asset allocators is putting pressure on fund managers with outperformance being “no longer sufficient” when it comes to fund development.
With evergreen funds being used by financial advisers for their liquidity benefits, Harbourvest is forecasting they are set to grow by around 20 per cent a year to surpass US$1 trillion by 2029.
Total monthly ETF inflows declined by 28 per cent from highs in November with Vanguard’s $21bn Australian Shares ETF faring worst in outflows.
Schroders has appointed a fund manager to its $6.9 billion fixed income team who joins from Macquarie Asset Management.
