Infrastructure funds provide investors with the opportunity to invest in essential public assets through professionally managed funds.
Infrastructure funds are professionally managed and can provide investors with benefits such as:
- Earnings stability
- Access to unique assets
- Returns from capital appreciation and income
- Taxation effective income stream
Key product features
Infrastructure funds are managed by specialist fund managers, who make the investment decisions on behalf of investors. Returns from infrastructure funds have a combination of capital growth and income. The incomes generated by infrastructure assets can be predictable, as they usually operate in environments with low levels of competition and high barriers to entry.
For growth-orientated funds, the absence of stable income in the near-term is compensated with capital growth in the medium term, as excess funds are used to expand the portfolio. Some infrastructure funds have more mature assets that generate steady income streams.
Types of infrastructure funds
Infrastructure assets include:
- Toll roads
- Communications assets such as broadcasting towers
- Materials handling facilities such as docks
- Rail facilities and other transport assets
- Utilities such as electricity power lines and gas pipelines
There is a wide selection of infrastructure funds to choose from that can be bought anytime during ASX trading hours through any licensed adviser or internet broking account. The ASX find a broker tool can help you search.
Investors should be aware of the risks of infrastructure funds before investing. Investors should obtain independent advice from a professional adviser prior to making any financial decision.
List of Infrastructure Funds
ASX in conjunction with Morningstar, produce quarterly performance reports. These reports should the complete list of infrastructure funds, their ASX code and information such as market capitalisation together with performance returns. To view click here.