An opportunity to invest in global infrastructure ... - Macquarie
An opportunity to invest in global infrastructure ... - Macquarie
An opportunity to invest in global infrastructure ... - Macquarie
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Performance of <strong>global</strong> <strong>in</strong>frastructure securities<br />
The chart below shows the average performance of the <strong>to</strong>p 256<br />
companies worldwide <strong>in</strong>volved <strong>in</strong> the ownership, management<br />
and operation of <strong>in</strong>frastructure assets. Performance is measured<br />
by the <strong>Macquarie</strong> Global Infrastructure Index 1 (the Index).<br />
Performance of the <strong>Macquarie</strong> Global Infrastructure Index<br />
250<br />
200<br />
150<br />
100<br />
50<br />
Introduc<strong>in</strong>g the CF <strong>Macquarie</strong> Global Infrastructure<br />
Securities Fund<br />
The CF <strong>Macquarie</strong> Global Infrastructure Securities Fund offers<br />
<strong>in</strong>ves<strong>to</strong>rs an <strong>opportunity</strong> <strong>to</strong> ga<strong>in</strong> exposure <strong>to</strong> the <strong>in</strong>frastructure<br />
sec<strong>to</strong>r. The Fund <strong><strong>in</strong>vest</strong>s <strong>in</strong> a diversified <strong>global</strong> portfolio of<br />
typically 40 <strong>to</strong> 50 <strong>in</strong>frastructure securities.<br />
The Fund's objective is <strong>to</strong> provide <strong>in</strong>ves<strong>to</strong>rs with a <strong>to</strong>tal return<br />
over the medium <strong>to</strong> long term consist<strong>in</strong>g of <strong>in</strong>come and capital<br />
growth. It may also be suitable for those who are seek<strong>in</strong>g <strong>to</strong><br />
further diversify an exist<strong>in</strong>g portfolio comprised ma<strong>in</strong>ly of equity<br />
and bond assets.<br />
Regional and sec<strong>to</strong>r allocation<br />
The portfolio construction process ensures diversification across<br />
countries and sec<strong>to</strong>rs, with allocations amended on an ongo<strong>in</strong>g<br />
basis <strong>in</strong> order <strong>to</strong> achieve the Fund’s <strong><strong>in</strong>vest</strong>ment objectives. The<br />
charts below show how the Fund was <strong><strong>in</strong>vest</strong>ed as at<br />
31 December 2007.<br />
0<br />
2002 2003 2004 2005 2006 2007<br />
Regional allocation<br />
The chart above conta<strong>in</strong>s past performance <strong>in</strong>formation. Past<br />
performance is not a reliable <strong>in</strong>dica<strong>to</strong>r of future performance<br />
and the performance of the CF <strong>Macquarie</strong> Global Infrastructure<br />
Securities Fund may differ materially from the performance of<br />
the Index. The performance of <strong>in</strong>dividual securities both <strong>in</strong>cluded<br />
and not <strong>in</strong>cluded <strong>in</strong> this Index may vary significantly from the<br />
average performance shown. The Fund may and may not <strong><strong>in</strong>vest</strong><br />
<strong>in</strong> <strong>in</strong>frastructure securities <strong>in</strong>cluded <strong>in</strong> the Index.<br />
Middle East<br />
1.59%<br />
Asia Pacific<br />
12.68%<br />
UK<br />
5.94%<br />
Cash<br />
13.67%<br />
Australia<br />
21.55%<br />
North America<br />
21.03%<br />
Europe<br />
20.52%<br />
South America<br />
3.02%<br />
Portfolio manager outlook<br />
Infrastructure securities have performed well over the last<br />
five years, however more recently the asset class has been<br />
<strong>in</strong>fluenced by volatility <strong>in</strong> <strong>global</strong> equity markets.<br />
While the near-term outlook for the sec<strong>to</strong>r rema<strong>in</strong>s cautious,<br />
the Portfolio Manager believes that recent events have created<br />
an <strong>opportunity</strong> for the Fund <strong>to</strong> <strong><strong>in</strong>vest</strong> <strong>in</strong> high-quality s<strong>to</strong>cks at<br />
attractive prices. Importantly, the underly<strong>in</strong>g fundamentals of<br />
the sec<strong>to</strong>r are supported by the ongo<strong>in</strong>g, long-term need for<br />
significant private <strong><strong>in</strong>vest</strong>ment.<br />
The Portfolio Manager expects key themes <strong>in</strong> 2008 will <strong>in</strong>clude<br />
ongo<strong>in</strong>g <strong><strong>in</strong>vest</strong>ment <strong>in</strong> the <strong>in</strong>frastructure projects around<br />
the world, further government privatisations and new <strong>in</strong>itial<br />
public offer<strong>in</strong>gs. The substantial capital raised by dedicated<br />
<strong>in</strong>frastructure <strong><strong>in</strong>vest</strong>ment funds <strong>in</strong> recent years is also expected<br />
<strong>to</strong> have a positive impact.<br />
Sec<strong>to</strong>r allocation<br />
Other<br />
2.20%<br />
Water<br />
5.93%<br />
Toll roads and<br />
transportation<br />
23.82%<br />
Cash<br />
13.67%<br />
Airports<br />
6.46% Diversified<br />
7.76%<br />
Electric utility<br />
5.40%<br />
Pipel<strong>in</strong>es<br />
19.12%<br />
Electric and gas distribution<br />
8.80%<br />
Electric generation<br />
3.36%<br />
Electric transmission<br />
3.65%<br />
1 Source: Bloomberg, the <strong>in</strong>dex used is FTSE <strong>Macquarie</strong> Global Infrastructure Ma<strong>in</strong> Local TR Index <strong>in</strong> GBP from 30 April 2002 - 31 December 2007.