Global Listed Infrastructure The Fund in Ten Slides

Transcription

1 Global Listed Infrastructure The Fund in Ten Slides July 2016

2 Maple-Brown Abbott Global Listed Infrastructure Fund Targets low volatility and inflation protection Offers an attractive risk/return profile Based on deep, fundamental analysis combined with a top-down approach to managing macro risks Managed by an experienced investment team aligned with client interests Backed by one of Australia s leading boutique fund managers

3 Competitive advantages 1. Core infrastructure Core infrastructure has the potential to offer: Lower volatility Inflation protection Income stability We believe it is important look beyond physical properties We focus on commercial frameworks, management and corporate governance 2. Ample Capacity A$675m of strategy assets under management* Currency Hedged & Unhedged Successfully managed larger mandates Left Macquarie managing in excess of $3bn 3. Alignment of interest Direct equity stakes in the firm Investment staff maintain significant investments in funds *as at 30 June 2016

4 Maple-Brown Abbott Global Listed Infrastructure Experienced investment team Andrew Maple-Brown Head of Global Listed Infrastructure & Portfolio Manager B.Eng (Mech.), B.Com, M.App.Fin, CIM 18 years infrastructure experience. Initially focussed on the debt financing of direct infrastructure and property assets at Lend Lease and Macquarie Group, followed by five years managing global listed infrastructure portfolios for Macquarie in New York and Sydney. Justin Lannen Portfolio Manager B.Eng (Chem.), B.Com, CFA 18 years infrastructure & utilities experience. Lead analyst responsible for infrastructure & utilities at Colonial First State when they were the largest listed infrastructure investor in Australia. Also a portfolio manager at Colonial First State, followed by five years managing global listed infrastructure portfolios at Macquarie Group in both New York and Sydney. Steven Kempler Portfolio Manager B.Com/LLB, M.Fin, CFA 8 years experience including six years with Macquarie as an infrastructure analyst, including more recently as an EM Infrastructure portfolio manager. Prior to this, worked at Rothschild in infrastructure debt advisory and debt & equity private placements. Steve has worked in both London and Sydney. Lachlan Pike Portfolio Manager B.App.Fin/LLB, Euro B.A, M.Agr. (Eco.) 10 years experience in financing and investing in real assets, the majority of this in global listed infrastructure. Experience as both an investment analyst and head trader at Macquarie in Sydney and New York. Investment team (49%) Experienced infrastructure investors Deep infrastructure knowledge listed and unlisted assets, and both a debt and equity perspective Complete skill set within global listed infrastructure Excellent track records (PMs / analysts / dealer) working together for many years Supported by: Maple-Brown Abbott Global Listed Infrastructure Maple-Brown Abbott (51%) Existing MBA research analysts providing Asian and Australian infrastructure & utility idea generation MBA s dealers, product management/client services, compliance, legal, operations, accounting and IT support including comprehensive systems

5 How do we define listed infrastructure? The physical structures, networks and companies that provide services essential to our daily lives and the growth of our economies Essential services Daily volume, high usage Large customer base Supporting social and economic activity Low/no risk of substitution Strategic positions Often monopolies & irreplaceable Strong demand catchment Long life, high value physical assets High barriers to entry including potentially significant upfront capital requirements Little or no competition Stable cash flows Long-term contracts / concession arrangements Captive market Pricing power, inelastic demand Low operating costs Prices and revenues often set by regulation Operating track record and history Predictable growth Essential to national GDP, stability and growth Inflation-linked contracts Permitted or regulated returns on new investment Increase competiveness & productivity of economy

6 Investment process overview Our investment process: Initial screening of 1,200 companies, market cap of US$4 trillion+ Stock analysis delivers pure infrastructure, approx. 110 stocks Detailed bottom-up analysis including long dated dividend discount models The best opportunities with factor ranking identified for portfolio construction High conviction, approx stocks with long term time horizon

7 Maple-Brown Abbott Global Listed Infrastructure Fund 30 June 2016 Investment Objective: Our investment objective for this Fund is to outperform, over rolling 5 year periods, the Benchmark which is the OECD Total Inflation Index plus 5.5% per annum. Fund Performance Although markets have been favourable, the fund has delivered strong performance coupled with low volatility. AUD net returns to 30 June Months % 1 Year % 2 Years % p.a. 3 Years % p.a. Since Inception % p.a. Fund Benchmark Reference Index^ Relative Performance to Benchmark Relative Performance to Reference Index Fund performance is based on the movement in net asset value per unit plus distributions and is before tax and after all fees and charges. Imputation and foreign tax credits are not included in the performance figures. Inception date is 18 December ^The Reference Index is the FTSE Global Core Infrastructure 50/50 Index, which was launched on March 2 nd The Reference Index performance since launch is 7.3% p.a., which compares to the Fund performance of 13.1% p.a. over the same time period. Value and Balance Sheet Characteristics Fund Number of Stocks 29 Dividend Yield 4.1% EV/EBITDA* 10.5x Gearing (Net Debt/EBITDA) 3.9x * Enterprise Value/Earnings before Interest, Taxes, Depreciation and Amortisation Based on fund weighted averages Risk Measures Annualised Daily Volatility* * Since inception Fund % MSCI World 10.6% 12.6% Beta vs MSCI World 0.76

8 Maple-Brown Abbott Global Listed Infrastructure Fund (Hedged) 30 June 2016 Investment Objective: Our investment objective for this Fund is to outperform, over rolling 5 year periods, the Benchmark which is the OECD Total Inflation Index plus 5.5% per annum. Fund Performance Although markets have been favourable, the fund has delivered strong performance coupled with low volatility. AUD net returns to 30 June Months 6 Months % % 1 Year % 3 Years % p.a. Since Inception % Fund Benchmark Reference Index^ Relative Performance to Benchmark Relative Performance to Reference Index Fund performance is based on the movement in net asset value per unit plus distributions and is before tax and after all fees and charges. Imputation and foreign tax credits are not included in the performance figures. Inception date is 14 July ^The Reference Index is the FTSE Global Core Infrastructure 50/50 Index Hedged. Value and Balance Sheet Characteristics Fund Number of Stocks 29 Dividend Yield 4.1% EV/EBITDA* 10.5x Gearing (Net Debt/EBITDA) 3.9x * Enterprise Value/Earnings before Interest, Taxes, Depreciation and Amortisation Based on fund weighted averages Risk Measures Annualised Daily Volatility* Fund % MSCI World 10.6% 12.6% Beta vs MSCI World 0.76 * Since inception 18

9 Lower volatility since inception 14.0% A differentiated, high conviction investment approach that has exhibited lower risk relative to broader equity markets, since inception 13.0% 12.4% 12.6% 13.0% 12.0% 11.5% 11.5% 11.0% 10.6% 10.0% 9.0% 8.0% Fund FTSE Global Infrastructure 50/50 Index S&P Global Infrastructure Index Dow Jones Brookfield Global Infra Index MSCI World S&P 500 Source: MBA; Bloomberg; FTSE, MSCI, S&P Dow Jones Indices, Dow Jones Brookfield Infrastructure Indices. Performance since inception of Maple-Brown Abbott Global Listed Infrastructure Fund (18 December 2012) through 30 June

10 Maple-Brown Abbott Disclaimer This presentation was prepared by Maple-Brown Abbott Limited (Maple-Brown Abbott) ABN , Australian Financial Service Licence No. (AFSL) , is intended to provide general information only, and does not have regard to an investor s investment objectives, financial situation or needs. The content does not constitute advice and should not be relied upon as such. Our presentation, including comments we make about individual stocks, is intended only to explain our approach to managing funds. In discussing individual stocks or other investments we do not make any recommendation or give any statement of opinion that is intended to influence anyone in making an investment decision. Investment advice should be sought in respect of individual circumstances. Performance figures are before tax and after management fees. Past performance is not a reliable indicator of future performance. Backtested performance for the Focus List is developed with the benefit of hindsight and has inherent limitations. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Actual performance may differ significantly from backtested performance. Backtested results are adjusted to reflect the reinvestment of dividends and other income, and are presented gross of fees, taxes and transaction costs. No cash balance or cash flow is included in the calculation. Maple-Brown Abbott Limited does not make any representation or give any guarantee as to the future performance or success of, the rate of income or capital return from, the recovery of money invested in, or the income tax or other taxation consequences of, any investment. Units in the Maple-Brown Abbott Global Listed Infrastructure Fund (Fund) are issued by MBA. Before making a decision whether to acquire, or to continue to hold an investment in the Fund, investors should obtain and consider the current Product Disclosure Statement for the Fund, available on MBA s website maple-brownabbott.com.au.