Sector review reveals value opportunities

The Listed Infrastructure sector performed very strongly over the past 12 months, with S&P Global Infrastructure Index returning over 20%. Zenith noted that “all nine funds that achieved a rating of Approved or higher outperformed Zenith’s assigned benchmark.”

Zenith’s sector report also focused on the defensive attributes of Listed Infrastructure, undertaking in-depth quantitative analysis on fund performance over the past five years. Baird believes that “Listed Infrastructure provides downside protection; however, the level of protection diminishes as the magnitude of the market downturn increases.”

From an initial investment universe of 14 Listed Infrastructure products, nine received a positive rating, with four funds achieving a HIGHLY RECOMMENDED rating, four received a RECOMMENDED rating and one was assigned an APPROVED rating.

While the sector has performed strongly in recent times, managers reviewed by Zenith believe “that there are still value opportunities in the sector; however, they are less common than they have been in recent years.”

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