An opportunity to invest in global infrastructure ... - Macquarie

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Performance of global infrastructure securities The chart below shows the average performance of the top 256 companies worldwide involved in the ownership, management and operation of infrastructure assets. Performance is measured by the Macquarie Global Infrastructure Index 1 (the Index). Performance of the Macquarie Global Infrastructure Index 250 200 150 100 50 Introducing the CF Macquarie Global Infrastructure Securities Fund The CF Macquarie Global Infrastructure Securities Fund offers investors an opportunity to gain exposure to the infrastructure sector. The Fund invests in a diversified global portfolio of typically 40 to 50 infrastructure securities. The Fund's objective is to provide investors with a total return over the medium to long term consisting of income and capital growth. It may also be suitable for those who are seeking to further diversify an existing portfolio comprised mainly of equity and bond assets. Regional and sector allocation The portfolio construction process ensures diversification across countries and sectors, with allocations amended on an ongoing basis in order to achieve the Fund’s investment objectives. The charts below show how the Fund was invested as at 31 December 2007. 0 2002 2003 2004 2005 2006 2007 Regional allocation The chart above contains past performance information. Past performance is not a reliable indicator of future performance and the performance of the CF Macquarie Global Infrastructure Securities Fund may differ materially from the performance of the Index. The performance of individual securities both included and not included in this Index may vary significantly from the average performance shown. The Fund may and may not invest in infrastructure securities included in the Index. Middle East 1.59% Asia Pacific 12.68% UK 5.94% Cash 13.67% Australia 21.55% North America 21.03% Europe 20.52% South America 3.02% Portfolio manager outlook Infrastructure securities have performed well over the last five years, however more recently the asset class has been influenced by volatility in global equity markets. While the near-term outlook for the sector remains cautious, the Portfolio Manager believes that recent events have created an opportunity for the Fund to invest in high-quality stocks at attractive prices. Importantly, the underlying fundamentals of the sector are supported by the ongoing, long-term need for significant private investment. The Portfolio Manager expects key themes in 2008 will include ongoing investment in the infrastructure projects around the world, further government privatisations and new initial public offerings. The substantial capital raised by dedicated infrastructure investment funds in recent years is also expected to have a positive impact. Sector allocation Other 2.20% Water 5.93% Toll roads and transportation 23.82% Cash 13.67% Airports 6.46% Diversified 7.76% Electric utility 5.40% Pipelines 19.12% Electric and gas distribution 8.80% Electric generation 3.36% Electric transmission 3.65% 1 Source: Bloomberg, the index used is FTSE Macquarie Global Infrastructure Main Local TR Index in GBP from 30 April 2002 - 31 December 2007.
Investment strategy Macquarie believes that superior performance comes from a systematic, bottom-up approach to identifying long-term value in infrastructure companies. To implement this approach we use a disciplined investment process to analyse companies and determine the quality of the assets they own, operate or manage, including their future cash flow and growth prospects. Portfolio manager The Fund is managed by Justin Lannen who has 10 years of investment experience, including seven years in the infrastructure and utility sectors. Justin works closely with the Chief Investment Officer of Macquarie's infrastructure securities business, Jon Fitch, who has 20 years of experience. “ Our performance comes from an in-depth understanding of the global infrastructure industry combined with our strict stock selection criteria. ” Investment team Our investment team consists of four portfolio managers and seven analysts dedicated to researching the global listed infrastructure securities universe and constructing well diversified portfolios. We currently manage 15 global infrastructure securities portfolios for retail and institutional clients in the UK, US, Canada, Australia and Asia totalling more than £1.7 billion 2 of funds under management. Key features – retail asset class Justin Lannen Portfolio Manager Launch date 3 22 June 2007 Launch price £1.00 Fund structure FSA-authorised UK OEIC Initial charge 4.5% Annual charge 1.6% Type of share class Income and Accumulation Distribution dates November (Interim) and May (Full) Base currency Sterling Typical number of 40 – 50 holdings Minimum investment £1,000 level PEP/ISA qualifying Yes Price information www.investmentuk.org SEDOL B1W2BX0 (Acc), B1W28Q2 (Inc) How to invest If you are interested in investing the Fund, contact your financial adviser. Alternatively, you can invest directly by calling 0845 608 0948. What are the risks of investing Any stock market investment involves risk and before deciding to invest, it is important you understand the risks of investing. The key risks of investing are set out below. Details of all risks can be found in the full Prospectus and should be read carefully. Market fluctuations The value of investments and the income derived from them may fall as well as rise and investors may not recoup the original amount invested in the Fund. There is no assurance that the investment objective of the Fund will actually be achieved. Performance risk There is no guarantee of the performance of your investment and you may get back less than you put in. Past performance of infrastructure securities or the infrastructure market is not a guide to future returns. Infrastructure specific risks As the Fund will primarily invest in infrastructure securities, it will be more susceptible to adverse economic or regulatory occurrences affecting the industry compared to an investment company that does not invest in a single industry. Owners, managers and operators of infrastructure assets may be subject to a variety of factors that may adversely affect their business or operations, including (without limitation): high interest costs in connection with capital construction programs, a change in the number of users of the product/ service, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning energy costs (among other things), the effects of energy conservation policies and other factors. They may also be affected by or subject to regulation by various government authorities, service interruption due to environmental, operational or other mishaps, the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards and general changes in market sentiment towards infrastructure assets. These factors may affect the value of infrastructure securities which may in turn impact the income and capital returns of the Fund. 2 As at 31 December 2007. 3 Launch date defined as final day of fixed offer period on 22 June 2007.
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An opportunity to invest in global infrastructure ... - Macquarie

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