macquarie global infrastructure total return fund annual report 2012

• The solid performance of
transportation stocks, with good
performance from the Airports
and Toll Roads sectors, but
weakness in the Seaports sector;
• The strong performance of
regulated utilities stocks; and
• The good performance of
water stocks.
Let’s look at these reasons in
further detail.
Pipelines
Pipeline stocks in Canada and
the United States contributed
strongly to the Fund’s positive
return. The sector benefitted from
a combination of factors, including
demand for its attractive yield,
merger and acquisition activity,
and the continued expansion
of shale gas and oil production,
which requires new pipeline and
associated energy infrastructure
in order to deliver the increasing
supply to the market. The strong
performance was led by U.S.
Master Limited Partnerships (MLPs).
Magellan Midstream Partners LP
enhanced its portfolio of assets
with a number of crude oil growth
projects that drove earnings
and distribution growth beyond
expectations throughout the year.
Enterprise Products Partners
LP also benefitted from its asset
footprint, announcing new pipeline
and midstream projects that provide
visibility to its long term growth
prospects. Other notable performers
that benefitted from the general
thematic include El Paso Pipeline
Partners LP, TransCanada Corp.
and Williams Companies, Inc.
Transportation Infrastructure
The transport infrastructure
sectors outperformed during the
Period. Airport stocks posted
strong returns, led by Australian
Infrastructure Fund. It entered into
a Memorandum of Understanding
with Australia’s Future Fund for
the sale of all of its assets at an
implied premium of around 22%
to the share price. Beijing Capital
International Airport, Sydney Airport,
and Zurich Airport all posted solid
returns driven by solid passenger
volume growth. Zurich Airport
also reported strong retail spending
by passengers.
Toll Roads stocks contributed
meaningfully to return, led by
several European Toll Roads
stocks, despite weakness in the
first half of the year. Italy’s Atlantia
was up strongly on improved macro
sentiment and declining sovereign
bond yields. It reported 1H results
largely in line with expectations
and then 3Q traffic data showed a
Unless otherwise indicated, all references to currency are to USD.
(1)
Calculated on a total return basis, adjusting for distributions and assuming dividend reinvestment. The Fund is
not managed against any benchmark.
(2)
Source: ALPS Fund Services Inc., Bloomberg L.P.
(3)
The S&P Global Infrastructure Index (Net Total Return) consists of approximately 75 infrastructure/utilities
stocks and is selected by Standard & Poor’s Financial Services LLC.
(4)
The Macquarie Global Infrastructure Index consists of approximately 250 infrastructure/utilities stocks in the
FTSE Global All-Cap Index.
(5)
The MSCI World Index is a stock market index of 1600 'world' stocks maintained by MSCI Inc. The index
includes a collection of stocks of all the developed markets in the world, as defined by MSCI.
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