Infrastructure outperforms: Maple-Brown Abbott
Listed infrastructure outperformed global equities in weak markets, produced roughly the same return as global equities in up markets, and produced better overall dividend yields, according to Maple-Brown Abbott.
Portfolio manager, Steven Kempler, said over the last decade there were 15 quarters where listed infrastructure outperformed against global equities. That meant it outperformed 80 per cent of the time.
"It over performed more times over negative quarters and the average return in weak markets was materially higher," he said.
The fund manager's research was published in a new white paper released this week.
It found that listed infrastructure also produced superior downside protection relative to global equities in weak markets, as it returned -1.2 per cent over the last 10 years to 30 June 2016, while global equities returned -1.6 per cent.
In up markets, global listed infrastructure produced an average return of 2.3 per cent, while global equities produced less growth (with 2.1 per cent).
From peak to trough of the global financial crisis (September 2008 to October 2013) listed infrastructure was also down less than other comparable asset classes and recovered quicker, Kempler said.
Listed infrastructure fell 21 per cent, and was not impacted as much as global equities, which fell 41 per cent, while listed real estate investment trusts (REITs) fell 58 per cent.
Kempler also found that listed infrastructure's underlying dividend yields remained broadly stable over the last five years and produced an average yield of about three per cent, while global equities and REITs produced a yield of around two per cent.
Recommended for you
Money Management understands Natixis Investment Managers is planning to launch its own private asset product for the Australian retail market.
Magellan’s infrastructure funds have reported gains for the second consecutive month, avoiding potential outflows associated with the exit of its sector head Gerald Stack.
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
