Speaking to InvestorDaily, SQM Research managing director Louis Christopher said infrastructure securities benefited from investors searching for yield over 2012/2013.
“It’s been clear that investors are in the search for yield – high yielding and liquid investments at the same time,” Mr Christopher said.
“Naturally, direct infrastructure is not liquid at all so for the average investor to be able to get access to this segment, this market generally, the best way has been through buying the liquid infrastructure securities.
“Over the course of 2012 and into early 2013, before this most recent market correction, many of these infrastructure stocks rallied pretty hard, and the returns have been very solid.”
The review rated six global listed infrastructure securities funds, with five recording a rating of four stars or higher.
Topping the list was Lazard Global Listed Infrastructure Fund, which came in at 4.5 from a rating of 4.25 the previous year.
While global listed infrastructure has been impacted by the recent correction in the market, Mr Christopher said this is unlikely to be a long-term market condition.
“There are a lot of forces at play right now in the global equities market and, yes, infrastructure securities stocks are taking a part in this correction, there is no doubt about that,” Mr Christopher said.
“There are certainly some factors to consider, but my personal opinion is that this will be a shorter-term route rather than a long-term, sustained correction.”
