Developed Markets Infrastructure Income Model

The ClearBridge Developed Markets Infrastructure Income Model is designed to provide investors with attractive and stable returns through an actively managed portfolio of developed markets listed infrastructure companies. The Model holds a diverse range of infrastructure securities across a number of subsectors such as gas, electricity and water utilities, toll-roads, airports, rail and communication infrastructure and across geographic regions in developed markets.

Key Portfolio Information

As at 30 June 2024 (returns in AUD Hedged after fees)

Performance 1 Month 3 Months 1 Year 3 Years 5 Years Inception4
ClearBridge Developed Markets Infrastructure Income Model123 -4.5% -1.8% 1.1% 7.9% - 8.8%
OECD G7 Inflation Index +5.5% 1.0% 2.7% 8.7% 10.9% - 10.9%
Excess Returns -5.5% -4.5% -7.6% -3.0% - -2.1%
MSCI AC World (Net) (AUD) Index 1.8% 0.5% 19.0% 9.6% - 11.8%
FTSE Developed Core Infrastructure 50/50 Index - Net Return -3.1% -1.8% 2.4% 5.9% - 6.7%

As at 30 June 2024

  • Regulated & Contracted Utilities
  • User Pays Infrastructure
  • Cash
  • Other

As at 30 June 2024

Top 10 Positions Region Sector Weight % Forward Dividend %
Entergy USA & Canada Electric 5.8% 4.3%
NextEra USA & Canada Electric 4.9% 2.9%
Crown Castle USA & Canada Communications 4.8% 6.4%
American Tower USA & Canada Communications 4.6% 3.4%
Union Pacific USA & Canada Rail 4.4% 2.4%
Pembina Pipeline USA & Canada Energy Infrastructure 4.2% 5.4%
Enel SpA Western Europe Electric 4.1% 6.6%
Dominion Energy USA & Canada Electric 4.0% 5.4%
Redeia Corporacion SA Western Europe Electric 3.9% 5.0%
E.ON SE Western Europe Electric 3.8% 4.5%
Model Details June 2024
Number of Securities 33
Portfolio Weighted Average June 2024
Avg Market Capitalisation 64.6bn (AUD)
Div Yield (Forward) Gross 5.0%
5 Yr DPS Growth (p.a.) 4.5%
Avg Stock Gearing (Net Debt/EV) 41.8%
Interest Cover (Historic) 4.0x
EV/EBITDA (Forward) 11.3x

Product Commentary

Infrastructure Insights Portfolio Insights
Developed Markets Income Strategy June Commentary

Developed Markets Income Strategy June Commentary

Infrastructure and global equities rose in the second quarter, with infrastructure trailing global equities modestly as strength in the utilities sector faded late in the quarter.

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Investment Committee

The ClearBridge Developed Markets Infrastructure Income Model is managed by an experienced investment committee comprising of the following members:

Nick Langley
Nick Langley
Shane Hurst
Shane Hurst
Charles Hamieh
Charles Hamieh
Daniel Chu, CFA
Daniel Chu, CFA

Important Information for Investors

ClearBridge Investments Limited (ABN 84 119 339 052, AFSL No. 307727) is the Model Manager for the ClearBridge Developed Markets Infrastructure Income Model Portfolio (the “Model Portfolio”). Investors will not be able to invest in the Model Portfolio directly but may only obtain access via a platform, IDPS, IDPS-like or other managed account provider. Investors should seek further independent professional advice.

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Disclaimer

1. Source: Internal calculations for the ClearBridge Developed Markets Infrastructure Income Model. All data sourced from Factset. Results over one year annualised.
2. Portfolio performance is gross of fees.
3. All values in AUD and net of withholding taxes for benchmarks if applicable. Non-AUD values converted into AUD using Factset Forex data.
4. Performance inception date for ClearBridge Developed Markets Infrastructure Income Model is 31/03/2021.

ClearBridge Investments Limited (ABN 84 119 339 052, AFSL No. 307727) (“ClearBridge”) is the Model Manager for the ClearBridge Developed Markets Infrastructure Income Model Portfolio (the “Model Portfolio”). Investors will not be able to invest in the Model Portfolio directly but may only obtain access via a platform, IDPS, IDPS-like or other managed account provider (“Operator”). Any performance reported on this website page is the performance of the Model Portfolio and not the performance of any investment option within a scheme. The Operator has full discretion in regard to security selection and composition across the portfolio and is responsible at all times for the implementation and ongoing management of any actual investment option based on the Model Portfolio. Each Operator will charge its own fees and costs which will affect the performance of the actual portfolio. This means that the Model Portfolio set out on the website may vary from the actual portfolio held by an Operator. ClearBridge does not have any responsibility to investigate, oversee, review or monitor an Operator’s implementation and ongoing management of the Model Portfolio.

Past performance is not indicative of future performance.

While the information contained on this website has been prepared with all reasonable care, ClearBridge Investments* accepts no responsibility or liability for any errors, omissions or misstatements however caused. Any views expressed on this website are given as of the date of publication and such views are subject to change at any time. This information is not personal advice. It has been prepared without taking account of individual objectives, financial situation or needs. Where an investment product is mentioned, potential investors should seek independent advice as to the suitability of the product to their investment needs. Reference to shares in a particular company, is not a recommendation to buy, sell or hold that stock. Investors should be aware that past performance is not indicative of future performance.

This website may contain forecasts, including in regard to targets, expected returns, PE ratios and dividend yields. Any such statements are based upon research undertaken by the investment teams. This research incorporates our reasonable assumptions and beliefs concerning future developments and their potential effect but are subject to risks and uncertainties that may be beyond our control. Returns can be volatile, reflecting rises and falls in the value of underlying investments. Accordingly, we do not provide any assurance or guarantee that future developments will be aligned with our expectations, and actual results may differ materially from those expected or anticipated at the time of writing.

ClearBridge Investments is wholly, indirectly owned by Franklin Resources, Inc.

*ClearBridge Investments consists of ClearBridge Investments, LLC. (“CBI”) and its affiliated managers whose businesses have been operationally integrated with CBI’s, including ClearBridge Investments Limited and its subsidiary in Australia, and a part of Franklin Templeton Investments Corp. doing business as ClearBridge Investments in Canada.