In spite of outperforming its benchmark (the UBS Global 50/50 Infrastructure and Utility Index) over the past 12 months, the manager failed to make any headway over the past quarter when it returned +4.97% vs. the Index which rose 10.5%. On June 4th the manager moved to 100% cash to commence a strategic review of both strategy and option overlay as it sought to enhance option premium income, and ensure that it is able to capture opportunities in the sector.
1 year return: +4.97%. Annual (Dec.2007): -1.21%
The Trust's manager, Talon Infrastructure Pty Ltd noted that risk appetite returned during the past quarter although it looked a little tired after the strong rally from March lows. The manager's outlook is currently cautious given the market's recent strong bounce, noting that the global economy remains highly leveraged which ultimately must be reduced.
The trust paid a distribution of $0.33 for the six months to June, taking the twelve month distribution of $0.90 for a yield of 9.72%. Meanwhile the trust's assets remain fully invested in cash as it finalises the strategic review.
