VanEck today announced that Lonsec has assigned a ‘Recommended (Index)’ rating to its VanEck Vectors FTSE Global Infrastructure (Hedged) ETF (ASX code: IFRA).
Arian Neiron, Managing Director, VanEck Australia, said, “We are pleased to receive a ‘Recommended Index’ rating from Lonsec. Lonsec’s report highlights two of IFRA’s key strengths, the sub-sector capping which ensures investors receive diversification across the infrastructure sector and its cost effectiveness relative to unlisted active managed fund peers.
“IFRA is the first and only global infrastructure ETF that gives investors access to a portfolio of global infrastructure securities via a single trade on the ASX. IFRA tracks the FTSE Developed Core Infrastructure 50/50 Index (Hedged AUD), the predominant infrastructure benchmark used by industry professionals such as asset consultants and fund managers,” Neiron said.
Lonsec’s report noted VanEck’s track record in managing ETFs and the close working relationship of the global business. Lonsec also noted that the likelihood of currency hedging losses is more limited given the Fund’s Taxation of Financial Agreement (’TOFA’) election which allows the Fund to offset gains / losses on currency forwards against unrealised gains / losses on the underlying equities to produce a smoother and more reliable income stream.
Mr Neiron said, “We are seeing strong demand from investors for IFRA and expect this to continue as investors take advantage of the range of benefits it provides including its strong performance, stable income, and low correlation to traditional asset classes. In 2016 global infrastructure has been one of the best performing asset classes retuning 7.34 percent (see note 1).
“Our ETFs are valuable tools for financial advisers and their clients to build a range of portfolios with the benefits of cost effectiveness, transparency and liquidity. We expect demand will continue for our ETFs as more investors seek out simple and transparent ways to build better portfolios,” Mr Neiron said.
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Fund |
ASX code |
Features |
Management Cost |
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VanEck Vectors FTSE Global Infrastructure (Hedged) ETF |
IFRA |
. The first and only global infrastructure ETF on ASX . Aims to provide investment returns that replicate the performance of the FTSE Developed Core Infrastructure 50/50 Hedged into AUD Index . The Index comprises securities in developed countries which provide exposure to core infrastructure businesses, namely transportation, energy and telecommunications, as defined by FTSE’s International Classification Benchmark . The index sector allocations are as follows:
. Individual company exposure is capped at 5% . All the benefits of ETFs including:
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0.52% p.a. |
Notes:
1. Performance of the FTSE Developed Core Infrastructure 50/50 Hedged into Australian dollars Index from 1 January to 30 April 2016.
