macquarie global infrastructure total return fund annual report 2012
macquarie global infrastructure total return fund annual report 2012
macquarie global infrastructure total return fund annual report 2012
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A portion of the distributions may be<br />
treated as paid from sources other<br />
than net income, including, but not<br />
limited to, short-term capital gain,<br />
long-term capital gain and <strong>return</strong><br />
of capital. The final determination<br />
of the source of all distributions in<br />
<strong>2012</strong>, including the percentage of<br />
qualified dividend income, will be<br />
made by the Fund after<br />
December 31, <strong>2012</strong>.<br />
Outlook<br />
While the recession in Europe<br />
remains mild overall, southern<br />
Europe remains particularly reliant<br />
on support from policymakers for a<br />
sustainable solution to the European<br />
sovereign debt crisis. The portfolio<br />
retains a cautious stance in relation<br />
to Europe, with little exposure to<br />
southern European economies<br />
in particular.<br />
The companies in the portfolio<br />
continue to perform largely in line<br />
with expectations, their balance<br />
sheets are in good shape, and<br />
finance is available, demonstrating<br />
the resilience of <strong>infrastructure</strong> in a<br />
weaker economic environment.<br />
As interest rates remain very<br />
low around the world, reliable<br />
sources of yield continue to be<br />
sought by investors. We believe<br />
the <strong>infrastructure</strong> sector is well<br />
positioned in this environment.<br />
There are many <strong>infrastructure</strong><br />
companies with both sustainable<br />
dividends and the potential for<br />
dividend growth.<br />
We continue to identify what<br />
we believe are attractive listed<br />
<strong>infrastructure</strong> stocks and are looking<br />
for opportunities to selectively<br />
increase our holding or introduce to<br />
the portfolio stocks that we believe<br />
are attractively priced.<br />
Management Update<br />
Jonathon Ong and Brad Frishberg<br />
became co-Portfolio Managers of<br />
the Fund as of November 9, <strong>2012</strong>,<br />
replacing Andrew Maple-Brown.<br />
Mr. Ong is an experienced manager<br />
with substantial <strong>infrastructure</strong><br />
knowledge and expertise. He joined<br />
Macquarie’s Infrastructure Securities<br />
team as a Portfolio Manager in<br />
2008 and has been a member of its<br />
Investment Committee since then.<br />
Mr. Frishberg is Chief Investment<br />
Officer and the head of Macquarie’s<br />
Infrastructure Securities team.<br />
He has been the Chief Executive<br />
Officer of the Fund since May 2010<br />
and an Interested Director of the<br />
Fund since January 2011.<br />
Other Update<br />
During the Period, the Fund<br />
conducted a tender offer to<br />
purchase 20% of its issued and<br />
outstanding shares of common<br />
stock at a price equal to 95%<br />
of its NAV per share. The tender<br />
offer was conducted pursuant to<br />
a settlement agreement entered<br />
into by and among the Fund<br />
and certain Fund stockholders,<br />
including Western Investment LLC,<br />
Benchmark Partners LLC and their<br />
affiliates. The offer commenced<br />
on October 18, <strong>2012</strong> and expired<br />
on November 16, <strong>2012</strong>. The Fund<br />
accepted 3,463,415 tendered<br />
shares at a price equal to $19.49<br />
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