Macquarie expands infrastructure and property offerings

MacquarieInvestment Management has launched two new global funds covering infrastructure and property that investors will be able to access through wraps and master trusts.

The International Infrastructure Securities Fund is a benchmark-unaware diversified portfolio of between 20 and 50 infrastructure stocks from companies listed on global stock exchanges.

Macquarie Investment Management head of distribution Bruce Murphy said the product’s main point of difference is its open-ended nature, which he said would allow it to overcome the liquidity constraints faced by other infrastructure funds in the market. It also represents the first managed fund of listed infrastructure stocks in the Australian market.

A minimum initial investment of $20,000 is required by the fund and a management fee of 1 per cent is applicable, along with a 10 per cent fee charged on outperformance above the benchmark.

Meanwhile, the Global Property Securities Fund will invest in property in Australia, Asia, North America and Europe.

Investments in the US and Europe are being managed by Dividend Capital Investments and Kempen Capital Management respectively, in what Macquarie Funds Management head of property securities David Kivell describes as an exclusive information sharing exchange. Macquarie will manage the funds allocated to the domestic market and Asia.

The fund requires a minimum investment of $100,000 and charges investors a 1 per cent management fee.

Both global offerings are fully hedged back to the Australian dollar and do not include any upfront or exit fees. Skandia is the seed investor for the International Infrastructure Securities Fund and has included the fund as part of its model portfolios. It will also have discretionary usage of the fund on its platform menus from October 31, while Asgard will have the same discretionary usage from October 1.

The Global Property Securities Fund will be included on platforms from October 17 onwards.