Positive outlook for infrastructure returns

Investors looking for exposure to growth assets with good defensive characteristics should consider an infrastructure fund. At least that is the view of one of Australia’s leading infrastructure fund managers. RARE Infrastructure’s Income Fund returned 23.6 per cent in 2019…

Portfolio diversification: swap bonds for real assets

Real assets, such as commercial real estate and infrastructure, are taking on greater importance as safe haven assets. Investment manager JP Morgan Asset Management has issued the latest edition of its annual publication, Long-term Capital Market Assumptions, forecasting that global…

Infrastructure stocks deliver high yield

Infrastructure funds proved their worth during the global equity market sell-off in the December quarter last year, playing their role as high-yielding and defensive equity investments. Since then they have performed strongly, as investors have responded to falling inflation and…

Infrastructure funds offer investors ‘drawdown protection’

Infrastructure funds proved their worth during the global equity market sell-off in the December quarter last year, playing their role as high-yielding and defensive equity investments, according to new research. Zenith Investment Partners says that while global listed infrastructure funds…

Infrastructure income fund takes flight

Fund manager RARE Infrastructure has added Sydney Airport to its Infrastructure Income Fund portfolio, which is designed to produce income from a wide range of global infrastructure assets. RARE likes what it describes as Sydney Airport’s “dual-till” revenue model. Its…

Real assets, real advantages over A-REITs

Australian listed real estate investment trusts (A-REITs) are often included in well-constructed investment portfolios for both their predictable dividends and diversification benefits. While A-REITs help provide exposure to property assets that can otherwise be difficult for the average investor to…

Challenging the ‘bond proxy’ thesis

The idea that infrastructure assets are ‘bond proxies’ and will perform poorly when interest rates rise is an overly simplistic view of the asset class and its dynamics, a leading infrastructure fund manager says. This issue has had plenty of…