S&P cautious on infrastructure

There was only one ratings change in Standard & Poor’s Fund Services’s (S&P’s) latest review of the listed infrastructure sector, which S&P described as relatively immature.

S&P said it was cautious in terms of upgrades due to that sector immaturity, given the long-term nature of investments and limited track records.

The only change was an upgrade for the Macquarie International Infrastructure Securities Fund from three to four stars due to increased conviction in the team, which S&P said is one of the largest in the peer group and has the advantage of access to broader resources within Macquarie.

“The manager has also simplified the fund’s fee structure and with a relatively low management fee, the product is very competitively priced,” said S&P analyst Simone Gavin.

Overall nine ratings were affirmed and there were also new ratings and one withdrawal, S&P stated. Most funds were rated three stars and there were no five star ratings.

“We will continue to gain conviction over time as managers show they can meet objectives over the market cycle while consistently investing to their style,” Gavin said.