Performance inception date
3 April 2012
Minimum initial investment
Minimum suggested timeframe
Management fee (including GST, net of RITC)
0.70% per annum of the Fund’s net asset value
FTSE Developed Core Infrastructure Index (hedged to Australian dollars) with net dividends reinvested
Typical number of stocks
BENEFITS OF INVESTING
More stable returns
Infrastructure companies often operate in highly regulated monopolies that provide essential services to the community. Utilisation of their products and services tends to be resilient to increases in price and economic downturns. This means revenue streams tend to be more stable than the broader equities market.
Infrastructure assets have different characteristics to mainstream asset classes. Therefore, the Fund can help diversify risk and returns in an investment portfolio that’s largely made up of mainstream assets.
Access to a broader universe
The Fund typically invests in 100-120 listed infrastructure companies from right across the globe, which is more than most other funds in this asset class. This approach gives Redpoint a broader universe to seek opportunities and importantly helps to reduce risk by increasing asset, sector and geographic diversification in the portfolio.
Better protection from inflation and currency fluctuations
The usage rates charged by infrastructure companies for their products and services are often determined by regulators, governments or written into long-term contracts. These contracts are typically linked to inflation which means rates can be adjusted to allow for increases in the cost of living. The Fund is also substantially hedged to Australian dollars which helps reduce the impact of currency fluctuations on the Fund’s returns.
The Fund’s fees are lower than most actively managed global infrastructure funds. This is due to the quantitative approach Redpoint uses to identify infrastructure assets and its efficient processes for making and implementing portfolio construction decisions.