The 4D Global Infrastructure Fund will be managed as a single portfolio of listed global infrastructure securities. Infrastructure is defined to include regulated utilities in gas, electricity and water; transport infrastructure such as airports, ports, road and rail; as well as communication assets such as the towers and satellite sectors. The Fund is intended to be truly global with exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered.
The 4D Global Infrastructure Fund (Hedged) was down a net 3.24% in September 2023, under-performing the benchmark’s return of 0.70% (by 3.94%) but out-performing the FTSE 50/50 Infrastructure Index which was down 4.15%.
The strongest performer for September was Chinese port operator, China Merchants Port up 6.3% over the month. Despite a weak Chinese outlook, August saw some stabilisation in throughput volumes and management reiterated guidance which saw the stock bounce a little of August lows.
The weakest performer in August was US integrated regulated utility, Nextera down 14.2% for the month after its 54% owned subsidiary, Nextera Energy Partners, cut its dividend citing rising interest rates impacting their ability to execute on growth strategy.
Markets remain volatile on inflation/interest rate/economic growth concerns. Most developed market Central Banks are getting close to their peak policy rates, with a view to hold rates higher for longer, in an effort to get core inflation back to within target bands over a sustained period. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
What is 4D Global Infrastructure 4D Global Infrastructure is an Managed Funds investment product that is benchmarked against Global Infrastructure Index and sits inside the Property - Global Listed Infrastructure Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The 4D Global Infrastructure has Assets Under Management of 184.38 M with a management fee of 0.95%, a performance fee of 10.25% and a buy/sell spread fee of 0.6%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the 4D Global Infrastructure has returned 1.93% in the last month. The previous three years have returned 9.09% annualised and 12.09% each year since inception, which is when the 4D Global Infrastructure first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since 4D Global Infrastructure first started, the Sharpe ratio is 0.68 with an annualised volatility of 12.09%. The maximum drawdown of the investment product in the last 12 months is -7.73% and -19.77% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The 4D Global Infrastructure has a 12-month excess return when compared to the Property - Global Listed Infrastructure Index of 11.88% and 1.76% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. 4D Global Infrastructure has produced Alpha over the Property - Global Listed Infrastructure Index of 0.93% in the last 12 months and 0.16% since inception.
What are similar investment products?
For a full list of investment products in the Property - Global Listed Infrastructure Index category, you can click here for the Peer Investment Report.
What level of diversification will 4D Global Infrastructure provide?
4D Global Infrastructure has a correlation coefficient of 0.9 and a beta of 1.1 when compared to the Property - Global Listed Infrastructure Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on 4D Global Infrastructure and its peer investments, you can click here for the Peer Investment Report.
How do I compare the 4D Global Infrastructure with the Global Infrastructure Index?
For a full quantitative report on 4D Global Infrastructure compared to the Global Infrastructure Index, you can click here.
Can I sort and compare the 4D Global Infrastructure to do my own analysis?
To sort and compare the 4D Global Infrastructure financial metrics, please refer to the table above.
Has the 4D Global Infrastructure been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in 4D Global Infrastructure?
If you or your self managed super fund would like to invest in the 4D Global Infrastructure please contact Level 26, 20 Bond Street, Sydney NSW 2000 via phone +61 1800895388 or via email client.experience@bennelongfunds.com.
How do I get in contact with the 4D Global Infrastructure?
If you would like to get in contact with the 4D Global Infrastructure manager, please call +61 1800895388.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the 4D Global Infrastructure. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The 4D Global Infrastructure Fund (Hedged) was down a net 4.89% in August 2023, under-performing the benchmark’s return of 0.67% (by 5.56%) and slightly under performing the FTSE 50/50 Infrastructure Index which was down 4.70%.
In August, European stocks contributed positively to performance, whilst Chinese exposure was the largest detractor.
The strongest performer for August was Indonesian toll road operator Jasa Marga, up 11.1% on strong 1H earnings as earnings exceeded expectations, the capex cycle slows and guidance moves up.
The weakest performer in August was Chinese gas distributor ENN Energy down 34.4% for the month after results missed consensus earnings estimates. The stock has been completely over-sold on short term noise.
Markets remain volatile on inflation/interest rate/economic growth concerns. Most developed market Central Banks are getting close to their peak policy rates, with a view to hold rates higher for longer, in an effort to get core inflation back to within target bands over a sustained period. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
Performance Commentary - July 31, 2023 The 4D Global Infrastructure Fund (Unhedged) was up a net 0.86% (AUD) in July 2023, under-performing the benchmark’s return of 1.03% (by 0.16%) and in line with the FTSE 50/50 Infrastructure Index which was up 0.84% (AUD).
The strongest performer for July was Brazilian toll road operator, Ecorodovias up 26.3% as the market starts to rerate on expectations of a Brazilian interest rate cut (which happened in early August – 50bps). The stock had been over sold due to its high growth outlook in a high interest rate environment so the downward trajectory eases concerns around the funding of growth.
The weakest performer in July was again Italian multi-utility ACEA, down 7% as uncertainty around management persists. We believe the concerns are justified and are reducing our position in the stock.
Markets remain volatile on inflation/interest rate/economic growth concerns. Central Banks are still looking to tighten monetary policy to get inflation back to within target bands.
The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
Performance Commentary - June 30, 2023 The 4D Global Infrastructure Fund (Unhedged) was up a net 2.26% (AUD) in June 2023, out-performing the benchmark’s return of 0.84% (by 1.42%) and the FTSE 50/50 Infrastructure Index which was down 0.04% (AUD). Currency detracted 93bps from performance in June.
The strongest performer for June was the US pipeline operator Williams, up 15.5% for the month, recovering some recent weak performance with gas prices bottoming and sentiment improving in the sector.
The weakest performer in June was the Italian multi-utility ACEA, down 5.4% as uncertainty around management continues to weigh on the stock. We believe the concerns are justified and are reviewing our position in the stock.
Markets remain volatile on inflation/interest rate/economic growth concerns. Central Banks are still looking to tighten monetary policy to get inflation back to within target bands.
The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
Performance Commentary - May 31, 2023 The 4D Global Infrastructure Fund (Unhedged) was down a net 2.97% (AUD) in May 2023, under-performing the benchmark’s return of 0.95% (by 3.92%) but marginally outperforming the FTSE 50/50 Infrastructure Index which was down 3.0% (AUD). Currency contributed 34bps to performance in May.
The strongest performer for May was Chinese gas distributor, China Resources Gas +7.7% as news of fuel cost pass through and property led stimulus improve the 2023 earnings outlook.
The weakest performer in May was Chinese toll road operator Yuexiu Transport down 13.1% over concerns that the re-opening is not happening as fast as originally anticipated.
Markets remain volatile on inflation/interest rate/economic growth concerns. Central Banks are still looking to tighten monetary policy to get inflation back to within target bands. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also well positioned should Central Banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
Performance Commentary - April 30, 2023 The 4D Global Infrastructure Fund (Unhedged) was up a net 5.05% (AUD) in April 2023, out-performing the benchmark’s return of 1.08% (by 3.97%) and out-performing the FTSE 50/50 Infrastructure Index which was up 3.55% (AUD).
Currency contributed 223bps to performance in April. The strongest performer for April was again Brazilian toll road operator, Ecorodovias up 19.1% in the month. This is a continuation of March’s justified re-rating as the stock was very much oversold on capex/leverage concerns over the last few months.
The weakest performer in April was again Chinese gas distributor China Resource Gas down 14.5% on ongoing concerns around the speed of Chinese recovery and gas fundamentals. The market has completely over sold the stock on short term noise.
Markets remain volatile on inflation/interest rate/economic growth concerns, and recently emerged bank liquidity issues. Central Banks are tightening monetary policy to get inflation back to within target bands. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should central banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
Performance Commentary - March 31, 2023 The 4D Global Infrastructure Fund (Unhedged) was up a net 4.49% (AUD) in March 2023, out-performing the benchmark’s return of 0.13% (by 4.36%) and out-performing the FTSE 50/50 Infrastructure Index which was up 3.74% (AUD). Currency contributed 224bps to performance in March.
The strongest performer for March was Brazilian toll road operator, Ecorodovias up 26.3% in the month. This represents the start of a justified re-rating as the stock was very much oversold on capex/leverage concerns over the last few months.
The weakest performer in March was Chinese gas distributor China Resource Gas down 12.5% after H2 22 energy shortages and ongoing COVID lockdowns impacted FY reporting. The market completely over sold the stock on what should have been expected news and we are positioned for a re-rating once the positive 2023 outlook is reflected.
Markets remain volatile on inflation/interest rate/economic growth concerns, and recently emerged bank liquidity issues. Central Banks are tightening monetary policy to get inflation back to within target bands. The current share price volatility ignores the fact that listed infrastructure, as an asset class, can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. Infrastructure is also positioned well should central banks overshoot and we face near term recessionary pressure. We believe it is a sensible portfolio allocation at all stages of the economic cycle. We also believe the current pricing is a buying opportunity for the asset class.
Performance Commentary - February 28, 2023 The 4D Global Infrastructure Fund (Unhedged) was up a net 0.97% (AUD) in February 2023, out-performing the benchmark’s return of 0.40% (by 0.57%) and out-performing the FTSE 50/50 Infrastructure Index which was down 0.44% (AUD). Currency contributed 295bps to performance in February.
The strongest performer for February was Mexican airport operator GAP up 7% after yet another strong quarter of results and an ongoing robust outlook for 2023.
The weakest performer in February was US tower operator SBA Communications down 12.8%. While Q4 reporting was solid, the resignation of long term CEO, Jeff Stoop, raised some concerns given his significant success with the Company and its current peer premium valuation.
The market remains incredibly volatile on inflation/interest rate/growth concerns as central banks around the world raise rates in an effort to bring inflation back to target levels. The current volatility ignores the fact that listed infrastructure as an asset class can fundamentally do well in an inflationary environment, with explicit or implicit hedges and long-term predictable earnings profiles underpinned by contract or regulation. We believe it is a sensible portfolio allocation at the current stage of the economic cycle and we believe the current weakness is a buying opportunity for the asset class.
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