MORNINGSTAR’S TOP PICKS

• Magellan Infrastructure Fund (silver Morningstar rating)

Magellan invests conservatively, choosing companies that are essential and with limited exposure to competition, commodity prices and sovereign risk. They are typically highly defensive with predictable, reliable inflation-linked revenue and cash flow. It steers clear of weaker regulatory regimes, avoiding much of the infrastructure in emerging markets.

• CFS Global Listed Infrastructure (bronze)

Its fundamental bottom-up philosophy is a logical approach to infrastructure investing. The head and deputy have been with the fund since inception in 2007. Their approach aims to deliver a combination of inflation-protected income and capital growth. The approach tends to be slightly opportunistic and takes a broader view on the definition of infrastructure than many of its peers. The management fee is reasonable and, unlike many rivals, it has no performance fee.

• Lazard Global Listed Infrastructure (bronze)

Its strengths are a straightforward investment process and stable investment team, but the concentration risk of holding 29 stocks slightly lowers the rating. Lazard’s investment strategy is centred on “preferred infrastructures stocks”, which are defined as having monopoly-like characteristics, high revenue certainty, strong profitability and long-life assets.

• Maple-Brown Abbott Global Infrastructure (bronze)

Andrew Maple-Brown leads the five-person investment team, which favours companies with inflation-linked revenues and minimal competitive and commodity price risks. It analyses bigger-picture issues such as interest rates and oil prices.