Investor interest in the listed infrastructure remains strong despite experienced equity-like volatility in 2008, exacerbated by high levels of gearing, according to a Standard & Poor's sector review.
S&P Fund Services analyst Simone Arblaster said institutional pension plans in particular have "long been attracted to the long-duration inflation-linked and relatively stable investment characteristic of this sector".
Arblaster said an "interesting observation" from the review was just how critical the choice of benchmark is in the listed infrastructure sector.
"Unlike most other asset classes, the market is still coming to terms with how listed infrastructure managers should be measured and benchmarked."
The review, including five international managers and one domestic manager, assigned two new ratings and noted three withdrawals.
Goldman Sachs JBWere Australian Infrastructure Wholesale fund was the biggest mover in the review, up from three stars to four stars, while UBS Global Infrastructure Securities Fund was closed.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April.
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.