The general objective of the Portfolio is to provide total return, consisting of dividend income and capital appreciation, and diversification for investors consistent with prudent investment management.
The Portfolio Manager will seek a rate of return for the Portfolio that is in excess of the performance of the Benchmark over time. The Company has selected 90% of the FTSE Global Core Infrastructure 50/50 Index (net total return AUD) and 10% of the BofA Merrill Lynch Fixed Rate Preferred Securities (P0P1) (net total return AUD) as its Benchmark. For the purpose of measurement of the investment performance of the Portfolio Manager, portfolio returns will be calculated in AUD, gross of management fees, dividend withholding, corporate, or other taxes and all other ongoing investment-related expenses.
While the Portfolio Manager may invest in securities from a broad range of companies, countries and sub-sectors inside and outside the Benchmark and to different degrees than the Benchmark, the Company nevertheless believes that the Benchmark reflects an appropriate comparative set of global listed infrastructure securities. Moreover, the Benchmark is intended to focus the Portfolio Manager on global listed infrastructure securities investments including emerging markets, and on assessing securities on a risk-adjusted return basis from a developed market investor’s perspective.