Infrastructure investment specialist, Whitehelm Capital, has launched an Australia-domiciled version of its successful Europe-based Listed Core Infrastructure Fund to meet a growing Australian demand for truly defensive anchors for equity portfolios.
The new Australian Whitehelm Listed Core Infrastructure Fund – Unhedged (the Fund) is a benchmark unaware strategy that aims to return OECD CPI + 5% per annum with a minimum investment of $10,000.
The Fund invests in global core infrastructure such as airports, toll roads and rail roads as well as water, gas and electricity utilities, being assets with defensive cash flows and monopoly characteristics. The Fund avoids power producers and retailers with their exposure to volume and pricing risk, and sectors such as logistics and shipping companies with typically low margins and more volatile earnings.
Whitehelm Capital is an independently-owned specialist infrastructure manager with more than 60 staff in Australia and Europe and an outstanding track record spanning over 21 years.
Whitehelm’s Canberra-based portfolio manager, Ursula Tonkin said the Fund offered a number of key benefits for retail investors looking for a truly defensive anchor for their equity portfolios amid market volatility.
“The Fund aims to be the ideal defensive component of a balanced retail investor’s portfolio. It is more defensive than listed property and most global peer funds. The Fund also offers greater risk diversification and a lower correlation to broad equity markets than most peer funds, with a low 0.6 beta to global stocks markets, and a high degree of drawdown protection.
“All of these factors, along with its stable cash yield make it a very attractive vehicle for retail investors,” Ms Tonkin said.
Whitehelm’s Europe-based Listed Core Infrastructure Fund has outperformed its OECD CPI + 5% benchmark since inception in May 2016, returning 13.0% p.a. gross of fees, 5.7% above its benchmark and 12.2% p.a. net of fees, above its benchmark by 4.8% p.a*. Whitehelm Capital Listed Core Infrastructure Fund Class A (USD) Inc fund received an Overall 5 Star Morningstar Rating ™ out of 198 Sector Equity Infrastructure funds as at 31/07/2019.**
Whitehelm currently has $4.9 billion in funds under management and $18.1 billion of funds under advice. It is 70% owned by staff and 30% owned by Fidante Partners, the boutique funds management business of Challenger Limited. Whitehelm also offers products across unlisted infrastructure equity and high-yield infrastructure debt.
* Past performance is not a reliable indicator of future performance