MBA Global Listed Infrastructure-Hedge (MPL0008AU) Report & Performance

What is the MBA Global Listed Infrastructure-Hedge fund?

Maple-Brown Abbott Global Listed Infrastructure Fund is an actively managed, high conviction fund that invests in global listed infrastructure equities either directly in their locally domiciled market, or indirectly through Depository Receipts. Generally the companies we invest in have a market capitalisation greater than US$500 million. The Fund may also invest in hybrid or debt securities issued by infrastructure entities, or in unlisted equities provided that they are expected to be listed within 3 months from the date of investment.

  • The Fund typically holds between 25–35 stocks.
  • Aims to outperform the benchmark over rolling 5 year periods.
  • Exposure to a single stock should not be greater than 10% of the total portfolio.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For MBA Global Listed Infrastructure-Hedge

MBA Global Listed Infrastructure-Hedge Fund Commentary September 30, 2023

The Fund currently holds 29 global infrastructure stocks and returned -4.6% for September which was below the reference index. Calendar year to date the Fund has returned 1.7%, which compares to a return of -3.1% by the reference index. Global equities have been much stronger year to date, with the MSCI World in AUD up 16.7%.

The main positive stock attribution versus the reference index for the month came from a stock that isn’t held by the Fund, US clean energy and regulated utility Nextera Energy (NEE), which was down 14% for the month. NEE is the largest reference index constituent at approximately 4.5% and it was dragged down by news at its separately listed ‘YieldCo’ Nextera Energy Partners LP (NEP). NEP is a limited partnership that was formed to acquire and manage some of NEE’s clean energy projects. We have been suspicious of the governance structure of NEP for some time, hence we do not own NEP either. NEP announced it was halving its distribution growth as it was unsustainable in the higher interest rate environment.

Negative to Fund attribution were holdings in cell towers such as Cellnex which was down 7% and renewable energy companies such as Energias de Portugal (EDP) which was down 6%.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
MBA Global Listed Infrastructure-HedgeMPL0008AUManaged FundsProperty and InfrastructureGlobal Listed InfrastructureProperty - Global Listed Infrastructure IndexGlobal Infrastructure Index1.46 BN1%0.00%0.4%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
MBA Global Listed Infrastructure-Hedge8.62%4.39%1.12%6.74%6.06%13.46%14.62%12.44%-11.73%-13.42%-19.78%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
MBA Global Listed Infrastructure-HedgeProperty - Global Listed Infrastructure Index1.84%-0.42%0.22%-0.07%-0.07%1.213.99%3.61%0.970.96

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
MBA Global Listed Infrastructure-HedgeYes-https://www.maple-brownabbott.com.au/-

Product Due Diligence

What is MBA Global Listed Infrastructure-Hedge

MBA Global Listed Infrastructure-Hedge 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 MBA Global Listed Infrastructure-Hedge has Assets Under Management of 1.46 BN with a management fee of 1%, a performance fee of 0.00% and a buy/sell spread fee of 0.4%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the MBA Global Listed Infrastructure-Hedge has returned 8.62% in the last month. The previous three years have returned 6.74% annualised and 12.44% each year since inception, which is when the MBA Global Listed Infrastructure-Hedge 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 MBA Global Listed Infrastructure-Hedge first started, the Sharpe ratio is 0.42 with an annualised volatility of 12.44%. The maximum drawdown of the investment product in the last 12 months is -11.73% and -19.78% 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 MBA Global Listed Infrastructure-Hedge has a 12-month excess return when compared to the Property - Global Listed Infrastructure Index of 1.84% and -0.42% 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. MBA Global Listed Infrastructure-Hedge has produced Alpha over the Property - Global Listed Infrastructure Index of 0.22% in the last 12 months and -0.07% 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 MBA Global Listed Infrastructure-Hedge provide?

MBA Global Listed Infrastructure-Hedge has a correlation coefficient of 0.96 and a beta of 1.21 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 MBA Global Listed Infrastructure-Hedge and its peer investments, you can click here for the Peer Investment Report.

How do I compare the MBA Global Listed Infrastructure-Hedge with the Global Infrastructure Index?

For a full quantitative report on MBA Global Listed Infrastructure-Hedge compared to the Global Infrastructure Index, you can click here.

Can I sort and compare the MBA Global Listed Infrastructure-Hedge to do my own analysis?

To sort and compare the MBA Global Listed Infrastructure-Hedge financial metrics, please refer to the table above.

Has the MBA Global Listed Infrastructure-Hedge 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 MBA Global Listed Infrastructure-Hedge?

If you or your self managed super fund would like to invest in the MBA Global Listed Infrastructure-Hedge please contact via phone or via email .

How do I get in contact with the MBA Global Listed Infrastructure-Hedge?

If you would like to get in contact with the MBA Global Listed Infrastructure-Hedge manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the MBA Global Listed Infrastructure-Hedge. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - August 31, 2023

The Fund currently holds 30 global infrastructure stocks and returned -1.5% for August which was broadly in line with the reference index. Year to date the Fund has returned 6.6%, which compares to a return of 1.3% by the reference index. Global equities have been much stronger year to date, with the MSCI World in AUD up 21.6%.

Most of our listed infrastructure holdings were weaker over August as US long rates climbed higher. Mexican toll road holding Aleatica was the best performer as it neared takeover and delisting by IFM. Long cashflow duration stock underweights Transurban and Nextera Energy were the next largest adders versus the reference index (their shares were both off ~8%). Our transportation infrastructure holdings continued to report traffic recoveries post COVID. For example, Ferrovial’s largest toll road asset, the Toronto Highway 407, managed to get back to pre-COVID traffic in the month of June. Meanwhile Zurich Airport reported a better than expected first half result and said that passengers in the first half were at 88% of the level in 2019.

One of the smallest Fund positions offshore wind developer and operator Orsted was particularly weak, down 25% in local currency terms which is an unusually large move for a listed infrastructure stock. Orsted announced impairments to their US offshore wind portfolio. Supply chain impacts, outlook for tax credits and higher US interest rates all conspired to reduce future US project returns

Performance Commentary - July 31, 2023

The Fund currently holds 32 global infrastructure stocks and returned 0.8% for July which was broadly in line with the reference index. Year to date the Fund has returned 8.3%, which compares to a return of 2.9% by the reference index. Global equities have been much stronger year to date, with the MSCI World in AUD up 19.7%.

Brazilian toll road holding Ecorodovias was the strongest performer over July (up 26%). Revenue and cashflows were reported ahead of expectations for the first half of the year. Total like-for-like traffic in the first half was 8% above the pre-COVID 2019 level and tolls saw strong inflation-driven increases.

European transport concessions Ferrovial and Getlink continued their strong start to the year (up 5% and 3% respectively for July). Some of our large US regulated utility holdings started to perform after a weak start to the year, with Ameren, Entergy and Duke Energy returning between 4 and 6%.

There was ongoing weakness in US cell-tower companies and our main holding in that sector, Crown Castle, was down 5.0% making it our weakest holding for the month. We are seeing attractively priced opportunities in the US cell-tower sector after a weak 18 month period. The towers have been weak due to concerns over rate increases, leverage and their growth outlook. We see these factors as being more than priced in currently with their strong business models, defensive contracted earnings and long-term growth as digitalisation continues.

Performance Commentary - June 30, 2023

The Fund currently holds 30 global infrastructure stocks and returned -0.9% for June, underperforming the reference index by 0.9%. This completed the quarter with a return of -0.1% for the Fund, which compares to a return of 0.3% for the reference index.

It has been a particularly strong start to 2023 for global equities. In AUD terms the MSCI World index is up 17.2% for the first half of the year. This compares to the Fund returning 7.5% and the listed infrastructure reference index returning 2.1%. Global equities have been propelled by a large rally in US tech stocks. Indeed, the first half of 2023 was the worst first half for US utilities (many of which are in the infrastructure universe) versus the broader US equity market, since the 1990s. US utilities have been relatively weak yearto-date due to the market having interest rate concerns (even though the ten year bond yield has barely changed) and a stronger US economy than many predicted at the start of the year.

There was a mixed bag of relatively good performers in the Fund over June. Orsted, Cheniere Energy and Flughafen Zurich all did well (up 6-9%). Meanwhile Getlink, Cellnex and Severn Trent were the largest detractors (down 2-5%). During the month, except for the UK water sector (discussed below), news flow was relatively limited.

The Fund has nearly 6% invested in UK water utilities and towards the end of the month the privately owned and largest UK water utility Thames Water (not held) ran into financial difficulty. The problems at Thames Water have been brewing for years through a combination of high gearing and poor operational performance. This is in contrast to our listed holdings in Severn Trent and United Utilities. For example, our holdings are geared at around 60% of their regulated asset base (RCV) compared to ~80% at Thames Water. The regulator OFWAT assumes gearing at 60% and a rising interest rate environment can potentially expose more highly leveraged companies depending on the make-up of their debt profile. Severn Trent and United Utilities have a four-star environmental rating from the EPA and they have been able to earn positive financial incentives for good operating performance over recent years. This is in contrast to Thames Water which has a twostar rating and has suffered financial penalties for operational performance. Our view is that the situation at Thames Water is a crisis of the private equity infrastructure ownership model rather than a wider UK water sector issue. In addition, we have observed over recent years that the prices being paid in private transactions globally have been at a material premium to where comparable infrastructure assets trade in listed markets.

Performance Commentary - May 31, 2023

The Fund currently holds 30 global infrastructure stocks and returned -4.5% for May, underperforming the reference index by 1.4%.

Global listed infrastructure stocks were generally weaker over the month. Regulated US utilities continued their relative weakness year to date, with holdings in Ameren and American Electric Power down 9-10%. Likewise US cell-tower stocks continued their recent weakness.

The UK makes up 13% of the Fund and the four holdings all reported full-year results (March year-end) over May. Scottish energy and networks company SSE PLC was the most impressive with earnings and capex upgrades unveiled. The flexibility of thermal generation is currently very profitable in a volatile UK power market. Fresh capex includes increased investment in the electric networks and renewables space. Results for the UK water holdings met expectations and we think they are well placed for the upcoming five year regulatory pricing review that will mostly take place over this year and next. The potential for increasing environmental spend is a feature that we are watching closely. Inflation remains higher than expected in the UK and the holdings generally have strong inflation protection embedded in their regulatory frameworks.

Performance Commentary - April 30, 2023

The Fund currently holds 30 global infrastructure stocks and pleasingly returned 5.5% for April, outperforming the reference index by 2.0%.

Our European infrastructure holdings continued to perform well and this has been a solid theme so far in 2023. Owner and operator of the UK-France Channel Tunnel concession Getlink delivered a strong Q1 result, with broad-based strength across its business including a stronger-than-expected rebound in Eurostar passenger volumes. Even though volumes are still recovering post-COVID, car and truck shuttle pricing has also continued to deliver and was ahead of expectations amidst high inflation. Finally, its newly-constructed ElecLink transmission cable linking the French and UK power grids through the tunnel has continued to perform well and has already begun contracting 2024 capacity. Getlink is a >5% position in the Fund and was up 12% for April.

Despite the French political protests, we also saw further strength in French concession (toll roads and airports) and construction company Vinci, which was up 9% for April.

European cell-tower holdings Cellnex and INWIT continued to perform well, in contrast to our US cell-tower company Crown Castle which was down 8% for April after reporting a lacklustre Q1 result, but maintained guidance for the full year.

Performance Commentary - January 31, 2023

The Fund currently holds 30 global infrastructure stocks and pleasingly returned 1.3% for January, outperforming the reference index by 2.6%.

Our European infrastructure holdings were generally stronger over January, especially the transportation concessions such as Vinci (up 11%) and Ferrovial (up 10%).

European cell tower company Cellnex was up 16% in local currency, reflecting strength in the tower sector and also media reports about a potential takeover by American Tower and Brookfield Asset Management. We built around a 5% position in Cellnex over 2022 as it was particularly weak over interest rate concerns.

US utilities were modestly weaker relative to the listed infrastructure sector, even with the decline in bond yields. This was due to the US equity market moving money into general US equities to capture the market’s ‘risk-on’ mood. Our large regulated utility holdings such as Ameren and American Electric Power were down 2% and 1% respectively. Likewise US utilities that we don’t hold were down a similar amount, with the exception of large-cap Nextera Energy (not held) which was down 11% following a mixed 2022 financial result, management turnover and an alleged political financing investigation.

Performance Commentary - December 31, 2022

The Fund currently holds 30 global infrastructure stocks and returned -2.4% for December, outperforming the reference index by 1.0%. For the 2022 calendar year, the Fund outperformed the reference index by 3.6%.

In what was a weak month for the listed infrastructure sector, Portuguese listed utility and renewable energy developer EDP performed relatively well up 3% in local currency. Other holdings with renewable portfolios including SSE PLC and Orsted also performed relatively well (flat and up 2% respectively).

We did see weakness in US holdings with LNG export infrastructure assets, Cheniere Energy and Sempra Energy which were down 15% and 7% respectively. Despite the pullback in December, both of these stocks performed strongly in the 2022 calendar year.

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