Infrastructure Value Strategy
Investor Outcomes
The Infrastructure Value Strategy aims to provide investors with long-term, inflation-protected stable growth, comprised of consistent income & capital growth. This is achieved by investing in a range of listed infrastructure securities spread across geographic regions in both the developed and emerging markets.
Key Portfolio Information
Growth of AUD $10,000
As at 31 October 2023 (returns in AUD)
| Performance | 1 Month | 3 Months | 1 Year | 3 Years | 5 Years | Inception4 |
|---|---|---|---|---|---|---|
| ClearBridge Infrastructure Value Strategy123 | 2.5% | -3.1% | 1.3% | 10.0% | 9.3% | 8.9% |
| OECD G7 Inflation Index + 5.5% pa | 0.6% | 2.0% | 9.4% | 10.8% | 9.2% | 7.7% |
| Excess Returns | 1.9% | -5.1% | -8.1% | -0.8% | 0.1% | 1.2% |
| S&P Global Infrastructure Index - Net Return AUD Unhedged | -1.2% | -6.4% | -1.3% | 9.5% | 5.7% | 5.0% |
| MSCI AC World Index - Net Return AUD | -1.1% | -3.8% | 11.6% | 10.4% | 9.9% | 7.1% |
As at 31 October 2023
- Regulated & Contracted Utilities
- User Pays Infrastructure
- Cash
- Other
As at 31 October 2023
| Top 10 Positions | Region | Sector | Weight % | Forward Dividend % |
|---|---|---|---|---|
| PG&E | USA & Canada | Electric | 6.1% | 2.1% |
| Severn Trent | Western Europe | Water | 5.2% | 4.3% |
| Ferrovial | Western Europe | Toll Roads | 5.0% | 2.7% |
| CSX | USA & Canada | Rail | 4.8% | 1.6% |
| GetLink | Western Europe | Rail | 4.3% | 2.6% |
| NextEra | USA & Canada | Electric | 4.2% | 3.4% |
| Enel SpA | Western Europe | Electric | 4.1% | 7.2% |
| American Tower | USA & Canada | Communications | 4.0% | 3.7% |
| PPL Corporation | USA & Canada | Electric | 4.0% | 3.9% |
| United Utilities | Western Europe | Water | 3.6% | 4.7% |
| Portfolio Weighted Average | October 2023 |
|---|---|
| Avg Market Capitalisation | 51.6bn (AUD) |
| Div Yield (Forward) Gross | 3.6% |
| 5 Yr DPS Growth (p.a.) | 7.5% |
| Avg Stock Gearing (Net Debt/EV) | 39.1% |
| Interest Cover (Historic) | 4.0x |
| EV/EBITDA (Forward) | 11.5x |
Product commentary
Infrastructure Value Strategy October Commentary
UK water companies performed well in October as 2025-2030 business plans were well received and optimism grew that allowed returns would be higher than previously indicated, given higher bond yields.
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Valuation of Infrastructure Assets Q3 2023
In our latest Valuation update, Portfolio Manager, Simon Ong outlines the main drivers of infrastructure returns in the third quarter of 2023, and weighs in on the factors impacting different infrastructure sectors across the globe.
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Total Returns Set Infrastructure Apart from Equities and Bonds
Listed infrastructure’s defensiveness relative to other equities and its ability to provide long-term capital growth over an economic cycle relative to bonds offer differentiation in an environment of macroeconomic uncertainty and higher bond yields.
More...Investment Committee
The Infrastructure Value Strategy is managed by an experienced investment committee comprising of the following members:
Nick Langley
Shane Hurst
Charles Hamieh
Simon Ong
Investing in the Value Strategy
Investors from Australia & New Zealand
ClearBridge RARE Infrastructure Value Fund - Hedged
Suitable for investors in Australia and New Zealand seeking a balance of capital growth and stable income over the long-term through a currency hedged version of the Infrastructure Value Strategy.
More...ClearBridge RARE Infrastructure Value Fund - Unhedged
Suitable for investors in Australia and New Zealand seeking a balance of capital growth and stable income over the long-term through a currency unhedged version of the Infrastructure Value Strategy.
More...Institutional Investors
For institutional investors looking for opportunities to invest in global listed infrastructure; please contact us directly.
Investors outside of Australia and New Zealand
Investors in other parts of the world, will be re-directed to Franklin Templeton who may offer this Strategy through various fund structures dependant on your location.
Disclaimer
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Sources: Internal calculations for the Infrastructure Value Strategy. All index data sourced from Factset. Results over one year annualised.
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Fund Performance is Gross of fees.
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All values on a AUD basis and net of withholding taxes for benchmarks if applicable. Non AUD values converted into AUD using Factset Forex data.
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Performance inception date for the Infrastructure Value Strategy is 31/08/2006.
Past performance is not indicative of future performance.
While the information contained on this website has been prepared with all reasonable care, ClearBridge Investments Limited and its related companies ("ClearBridge") accept 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 ClearBridge investment team. This research incorporates ClearBridge’s reasonable assumptions and beliefs concerning future developments and their potential effect but are subject to risks and uncertainties that may be beyond ClearBridge’s control. Returns can be volatile, reflecting rises and falls in the value of underlying investments. Accordingly, ClearBridge does not provide any assurance or guarantee that future developments will be aligned with ClearBridge’s expectations, and actual results may differ materially from those expected by ClearBridge at the time of writing.
Franklin Templeton Australia Limited (AFSL No. 240827) (“Franklin Templeton”) is a part of Franklin Resources, Inc. and the Responsible Entity for the ClearBridge RARE Infrastructure Value Fund - Hedged, ClearBridge RARE Infrastructure Value Fund - Unhedged, ClearBridge RARE Infrastructure Income Fund - Hedged, ClearBridge RARE Infrastructure Income Fund - Unhedged and ClearBridge RARE Emerging Markets Fund (the “Funds”). Applications to invest can only be made on the application form accompanying the most recent Fund Product Disclosure Statement (“PDS”) which is available on this website. Potential investors should consider the PDS and the Additional Information Booklet (“AIB”) before deciding whether to invest or continue to invest in the Funds. The PDS and AIB can also be obtained by contacting ClearBridge by telephone on (02) 9397 7300, by writing to Level 13, 35 Clarence Street, Sydney, NSW 2000, by fax on (02) 9397 7399 or by email at [email protected]. Franklin Templeton can be contacted by writing to Franklin Templeton, Level 47, 120 Collins Street, Melbourne, VIC 3000, by telephone on 1800 679 541 or by fax on (03) 9017 8690. Franklin Templeton does not guarantee any rate of return or the return of capital invested. Investments are subject to risks, including, but not limited to, possible delays in payments and loss of income or capital invested.
ClearBridge is wholly, indirectly owned by Franklin Resources, Inc., and part of ClearBridge Investments, LLC.