Global Infrastructure Fund (UT04)

Global Infrastructure Fund
Fund Fact Sheet
(UT04)
as at 31 March 2014
Investment Objective and Policy
The fund will be up to 100% indirectly invested in infrastructure and
utility assets including toll roads, ports, airports, electricity networks
and generation.
The fund is broadly diversified with portfolio investments made on a
long-term basis. Companies are ranked on the basis of detailed
quantitative analysis. The fund will typically hold between 60 and 100
securities. Individual security weights generally do not exceed 6% of
the total fund.
Investment Management Style
Active, fundamental.
Investment Process
The fund manager selected to manage the fund is Cohen & Steers.
Fund Details
Fund Type: New Zealand Unit Trust
NZ Tax Status: Portfolio Investment Entity
Launch Date: 11 September 1996
Fund Size: NZ $ 20,372,189.02 as at 31 March
2014
Benchmark: UBS Global 50/50 Infrastructure &
Utilities Index, (in NZ dollars) hedged with net
dividends reinvested
Trustee: The New Zealand Guardian Trust
Company Limited
Independent Auditor: Ernst & Young
Issuer/Manager: AMP Wealth Management New
Zealand Limited
Address of the Manager: Lvl 21, 29 Customs
Street West, Auckland
Cohen & Steers investment process begins with the identification of the
core global infrastructure investment universe. Analysts then formulate
independent views on all infrastructure and utility companies. A
proprietary
macro
sector
overlay
is
used,
which
ranks
the
attractiveness of the infrastructure sub-sectors based on several key
drivers. After sector level over and underweights are established,
security level weightings are determined based upon the output of the
analyst-driven fundamental research and valuation models.
A stock screen identifies companies that exhibit the key infrastructure
characteristics - stable cash flows, largely regulated and monopolistic
businesses, and high barriers to entry. This leaves a global listed
infrastructure investment universe that includes approximately 300
companies totalling US$2.1 trillion of market capitalization. Sub-sectors
include utilities, gas pipelines, water, toll roads, airports, railroads,
ports and telecommunications.
Cohen & Steers, Inc
Founded in 1986, Cohen & Steers specialises in
managing income oriented equities and is one of
the world’s largest Real Estate Investment Trust
managers. In 2003, Cohen & Steers began
investing in listed infrastructure.
AMP Capital Investors (New Zealand)
Limited (AMP Capital)
AMP
Capital
makes recommendations for
the
appointment
(or
removal) of underlying fund
managers, the allocation to different asset classes, and
for active management of foreign currency exposure
where applicable. The team comprises a number of
experienced investment professionals operating in
the area of portfolio design, economic and
investment research.
On a regular basis AMP Capital meets with,
assesses and reviews alternative, potential and
incumbent fund managers within each asset class.
Security selection within this portfolio is currently
outsourced to Cohen & Steers.
Industry Breakdown as at 31 March 2014
Energy
13.8%
Industrials
30.8%
Consumer Discretionary
2.6%
Financials
10.6%
Telecommunication Services
3.3%
Utilities
32.8%
Cash
6.2%
0%
5%
10%
15%
20%
25%
30%
35%
UT04 - Performance vs Benchmark (%) as at 31 March 2014
Fund
Benchmark
25%
20%
15%
10%
5%
0%
1 Month
3 Months
6 Months
1 Year
2 Years
3 Years
5 Years
Fund
1.793%
6.600%
12.287%
19.301%
20.445%
16.128%
13.044%
Benchmark
1.793%
6.492%
11.280%
18.376%
19.120%
14.202%
13.555%
Performance is gross of tax and fees. Returns of 2 years or more have been annualised. The performance shown above represents past
performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown.
Principal value and investment returns will fluctuate so that units, when redeemed, may be worth more or less than their orig inal cost. The
benchmark is the UBS Global 50/50 Infrastructure & Utilities Index, (in NZ dollars) hedged with net dividends reinvested.
Geographic Breakdown (Incl. Cash) as at 31 March 2014
Top 10 Holdings as at 31 March 2014
%
North
America
41.0%
Others
2.0%
Cash
6.2%
New Zealand
1.1%
Australia
3.3%
Asia ex Japan
3.0%
United
Kingdom
5.1%
AMERICAN TOWER REIT
5.4%
CROWN CASTLE INTERNATIONAL COR
5.1%
VINCI SA
4.9%
CENTRAL JAPAN RAILWAY CO
4.6%
EAST JAPAN RAILWAY CO
3.5%
DOMINION RESOURCES INC/VA
2.8%
GROUPE EUROTUNNEL SA
2.8%
NEXTERA ENERGY INC
2.6%
NATIONAL GRID PLC
2.6%
GDF SUEZ
2.5%
Japan
11.1%
Europe ex UK
27.1%
Quarterly Fund Overview as at 31 March 2014
Equity markets fluctuated in the first quarter but rallied late in the period to end with positive total returns. Global
infrastructure, led by Europe and North America, solidly outperformed the broader markets. Concerns about emerging
markets, including China, muted advances in Asia, as did Japan’s decline after a strong 2013.
The US Federal Reserve
began tapering its bond buying programme but despite this and some resulting volatility, interest rates declined in the
quarter.
In this environment, more leveraged sectors and high dividend payers outperformed, with electric utilities falling into both
categories. Both toll roads and airports were lifted by their European components, while the railways subsector declined.
Within communications, the leveraged tower companies lagged on the outlook for higher interest rates.
Global listed infrastructure manager Cohen & Steers expect the global economic recovery to gather steam in 2014 and bring
compelling investment opportunities across the infrastructure universe. Cohen & Steers believe that decades of
infrastructure underspending in developed markets will have to be addressed, and new infrastructure needs in emerging
markets are substantial.
Disclaimer
© AMP Wealth Management New Zealand Limited (AMP) 2014. The information provided is for general purposes only and does not take into consideration
the personal circumstances of any individual. The information contained herein is subject to change at any time. Whilst AMP believes that the information
contained herein is correct, no warranty of accuracy, reliability or completeness is given and, except for liability under statute which cannot be excluded,
no liability for errors or omissions is accepted. An Investment Statement and Prospectus are available by contacting your local SPS adviser.