Planes, trains and pipelines: the new name on AJ Bell’s Favourite Funds list

We keep our Favourite funds list under constant review to ensure we have the highest conviction in the funds we’ve selected. Following a review, in the infrastructure equities space we have added the FTF ClearBridge Global Infrastructure Income fund and removed the First Sentier Global Listed Infrastructure fund from the list.  

We believe the FTF Clearbridge Global Infrastructure Income fund is a good option for investors looking for a more defensive equity fund that can exhibit low correlation to broader equity markets. This risk profile is due to the more defensive, often contractual, nature of the cash flows of the underlying infrastructure businesses held by the fund.  

The fund is managed by an experienced team of specialist infrastructure investors based out of Sydney, Australia. The team look to invest in businesses that own infrastructure assets both available for public use and have regulatory frameworks behind them, such as utility companies, airport operators and toll road businesses. Current holdings include US electricity provider Entergy and freight transport specialist Canadian National Railway. 

Beyond the team and process, we also like the higher level of income paid by the fund than the broader market, as well as the fund’s reasonable fees. 

To make way for the Clearbridge fund, we have removed the First Sentier Global Listed Infrastructure fund from the list. Despite having an experienced management team, the fund has failed to keep pace with stronger performing peers, including the Clearbridge fund, while also taking fewer positions away from its benchmark. This underperformance and benchmark similarity has dampened our conviction in the First Sentier fund. We also view the fund’s lower yield as a drawback within as asset class that can provide investors good levels of income.