“The Fund invests in a well-diversified global portfolio of listed infrastructure securities and is substantially hedged to the Australian dollar.”
In managing the Fund, redpoint’s approach is not benchmark driven. The team believes it can better capture the asset class returns available from the wide range of investment opportunities around the world by considering investments from a wider universe of companies than those in the benchmark. It may also hold companies not in the benchmark and excludes others that are.
The investment team selects and weights companies according to two components: strategic and dynamic.
- The strategic component reflects the wider universe and ensures the Fund is not concentrated in a small number of larger capitalisation companies
- The dynamic component involves a rigorous assessment of each company.
A wide range of quantitative and qualitative data and information is used by the team to analyse:
- Dividend yield – higher dividend yields can help boost income from the Fund’s investments
- Financial leverage – redpoint limits exposure to excessive leverage
- Sustainability – redpoint believes factors such as labour standards and economic, environmental, social and corporate governance factors can enhance long term returns.
The Fund at a glance
- Active, benchmark unaware global infrastructure strategy
- Quantitative investment approach
- Typically invests in 100-140 listed infrastructure equities across the globe
- Asset, sector and geographic diversification in the portfolio aims to reduce risk
- Substantially hedged to Australian dollars; this helps reduce the impact of currency fluctuations on the Fund’s returns.