Delivering "Negative Downside Capture" with Infrastructure

Magellan Asset Management

Promoted by Magellan Financial Group:

People need to turn the lights on, have showers, drive on roads and make phone calls. The essential nature of pure infrastructure should deliver investors with stable earnings irrespective of economic conditions. However, the last eighteen months has demonstrated that not all infrastructure is the same, with many companies suffering from the declining oil price. Throughout the GFC, tech wreck and volatile oil prices, Magellan's infrastructure strategy has protected long-term investor capital whilst delivering stable returns across the economic cycle.

The Magellan Infrastructure Fund (Currency Hedged) ("The Fund") is the third exchange-quoted managed fund launched by Magellan. The Fund (ASX: MICH) commenced trading on the ASX in July this year to provide investors with ease of access to Magellan's successful global listed infrastructure track record and expertise. The Fund is a mirror version of the unlisted Magellan Infrastructure Fund which was launched on 1st July 2007.

Magellan's unique and disciplined approach to infrastructure has helped it secure the top spot of the Mercer Survey for global listed infrastructure (hedged) funds* and Morningstar's highest infrastructure analyst rating. Magellan's head of Infrastructure, Gerald Stack, believes that the essential nature of pure infrastructure should consistently deliver investors an inflation plus 5-6% return over the long term.

"If your clients are looking for a highly defensive, inflation-linked exposure that exhibits low correlation with other asset classes, Magellan's approach to infrastructure aims to provide a portfolio of pure infrastructure assets that meet these requirements." Stack said.

* Mercer Sector Survey June 2016.