ANZ Investments has confirmed the launch of its global listed infrastructure fund as a stand-alone portfolio investment entity (PIE) product, tapping into a growing appetite for the asset class.
Previously only available as part of the ANZ multi-manager arrangements, the bank-owned investment house has released the listed infrastructure fund through its adviser-focused OneAnswer brand.
The group hired Australian firm Maple-Brown Abbott (MBA) to run the infrastructure mandate in 2019 with the portfolio growing from an initial $250 million mandate to over $760 million at the latest count.
In a release, Paul Huxford, ANZ Investments chief investment officer, said the “creation of this retail fund is a natural next step for us, offering external advisers this asset class within a well-priced, tax-efficient PIE”.
Listed infrastructure has seen a surge in interest of late as investors seek sustainable long-term yields and some measure of inflation-protection.
In August, for example, Salt Funds Management went live with its global listed infrastructure product featuring US-based Cohen & Steers as underlying manager.
AMP Capital has offered a product in the asset class since 2012, reporting over $230 million under management as at the end of September this year. Australian-headquartered manager, First Sentier Investors also launched a retail PIE version of its global listed infrastructure fund in 2018 after operating the strategy for NZ institutional investors for five years. (At the time First Sentier was known as Colonial First State Global Asset Management under its previous owner, the Commonwealth Bank of Australia.)
The First Sentier global listed infrastructure PIE recorded almost $300 million under management as at the end of June this year.
Huxford said infrastructure was “very much in the spotlight at present, with many global governments having made significant funding commitments to this sector in response to the COVID-19 pandemic”.
“Investing in infrastructure assets gets economies moving and is essential for economic growth and creating jobs,” he said in a release. “While building and maintaining these assets can cost a lot, the rewards for investors who are prepared to invest for the long term can be significant.”
The Maple-Brown Abbott-managed fund typically holds 25 to 35 stocks, diversified across sectors and regions. Since inception in 2012, the MBA global listed infrastructure strategy returned just over 12 per cent annualised in Australian dollar terms compared to 7.5 per cent for the benchmark OECD Total Inflation Index plus 5.5 per cent.
ANZ has capped the OneAnswer listed infrastructure fund annual management fee at 0.95 per cent with 100 per cent hedging to the NZ dollar.
The OneAnswer Single-Asset-Class series includes 10 products with the almost $330 million International Property Fund, managed by Resolution Capital, the largest.