View more on these topics

Product matters

OK, I too thought infrastructure sounded a really rather dull topic but when you dig a little deeper, you realise that First State could be on to something with its global infrastructure fund.

What constitutes infrastructure? It gives the manager a wider remit than you might think as it encompasses both economic and social infrastructure.

Economic infrastructure is wide ranging and refers to services for which the user typically pays such as transport (toll roads, airports, seaports and freight rail), power (gas and electricity generation, distribution and transmission) and water (supply, sewerage and drainage).

However, social infrastructure is generally subsidised and covers such public services as education, healthcare facilities, law and defence facilities and passenger rail facilities.

The portfolio consists of a reasonably concentrated 30-50 holdings selected from a universe of about 900 stocks, with a truly global spread. Bottom-up stock selection is aided by ranking them one to five, with reference to 20 different criteria which influence infrastructure stocks, to give a total out of 100. The yield is 3.7 per cent at launch.

This is an excellent portfolio diversifier. A fund for the long term and one that should prove defensive. With other asset classes sharing the same characteristics now looking fairly fully valued, could this be an alternative to owning a UK property fund?

Darius McDermott is managing director of Chelsea Financial Services

Recommended

Time to answer back

With the RDR still very much at the heart of IFA concerns some new viewpoints have been voiced by representatives from SimplyBiz, Cavanagh Group and pi Financial Dixon Sutcliffe, breathing new life into the hot topic.

A Shaw thing

Sam Shaw is a reporter on Money MarketingWhile my industry counterparts were up at the Edinburgh Fringe courtesy of Aegon, I was sitting my final media law exams. I did, however, take a night out of my revision to attend the Spitbank Fort in the middle of the Solent as a guest of Webline.Despite our […]

L&G apology as Israeli is questioned on term plan

Legal & General has apologised over the questioning of a customer by its underwriting team.The client, Mrs Limor Abramov, an Israeli medical professional and UK resident, applied for L&G level term insurance but says she was made to feel “ashamed of her origins” by the questioning she experienced.Abramov told L&G that she would be returning […]

ETFS focuses on oil

ETF Securities has brought out a range of oil exchange traded commodities on the London Stock Exchange.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com