The Magellan Infrastructure Fund (the Fund) has returned 8.6% (net of fees) over the 10 years to 30 June 2017, 2.6% above the performance of the S&P Global Infrastructure & Utilities Index, which returned 6.0% over the period.
The Fund is managed according to Magellan's concentrated Select strategy, which seeks to provide efficient access to stable returns offered by the infrastructure asset class while protecting capital in adverse markets. Infrastructure stocks that will help achieve these aims generally have strong underlying financial performance over the medium to long term, which is expected to translate into reliable, inflation-linked returns.
The Select portfolio typically holds between 20 to 40 stocks.
Commenting on the history of the fund, lead portfolio manager and and Magellan head of investments and infrastructure, Gerald Stack said: "Our aim has always been to construct a portfolio of high-quality listed infrastructure investments to enable investors to benefit from the reliable earnings derived from true infrastructure companies."
He added: "[Over the past decade the Fund's] underlying philosophy has remained consistent. From the beginning, we believed that an investment in infrastructure should provide investors with an exposure to reliable income streams and that the consistency of these income streams should give investors great confidence that they will grow their wealth over time."