Looking for clues
An allocation to infrastructure from property is becoming an increasingly well-trodden path. And, like the IA Property sector, the infrastructure market gives few clues as to what is within each fund.
For example, Foresight VCT Infrastructure returned 3.4% over the past two years (to 31 October), but at an annualised volatility level of just 3.7%; whereas the VinaCapital Investment Management Vietnam Infrastructure Private Equity SHS returned 29.2%, but at a volatility level of 27.3%.
The real outlier is the GS North American Energy & Energy Infrastructure Equity Portfolio, with a return of -15.44% at an annualised volatility of 22.4%. But even this loss is a considerable improvement on the figures in February before the resurgence in energy prices. Back then the peak to trough from 15 May until the second week of August was approximately 50%.
The three funds with the best risk-adjusted returns over the past two years are the three largest and probably best known trusts: 3i Investments Infrastructure, InfraRed Capital Partners HICL Infrastructure and First State Global Listed Infrastructure.
The First State fund has been particularly popular with wealth managers, most likely because the fund is open-ended and resides in the IA Global sector. The management team have been in place for more than five years and this in itself screens well in a sector that has few long-lived investable funds.
