Hybrid infrastructure funds, comprising a mixture of listed and unlisted stocks, represent a strong market opportunity for retail investors, according to Challenger Financial Services.
“If you don’t want exposure to a listed [infrastructure] product that’s subject to the whims of the market and volatility, there is really not much you can get … there’s a real hole there,” said Challenger head of mergers and acquisitions Andrew Jones, speaking after this week’s Portfolio Construction Conference.
Driven by the belief that a combination of listed and unlisted stocks is critical for retail infrastructure investment, Challenger launched its hybrid Global Infrastructure Fund (GIF) in May this year.
Since that time it has built a portfolio of between 15 and 20 stocks comprising European, British and Australian infrastructure companies. The portfolio is expected to close off within the next six weeks, when bidding for a large energy transmission company in the northern states of the US ends.
