EQUITY RETURN IN SELECTED INFRASTRUCTURE FUNDS
TAN HWEE KNG STELLA
TAN HWEE KNG STELLA
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Abstract
Infrastructure trusts tend to provide stable long-term returns. Due to its stability as an asset class, infrastructure trusts provide an attractive portfolio alternative for investors.
Although there are various ways to calculate return for infrastructure trusts (Sawant, 2010), little research has been done on the return of such funds that are listed in the local stock market.
This study examines the return to equity for five infrastructure funds, namely China Merchants Holdings (Pacific) Limited (CMHP), Macquarie International Infrastructure Fund, CitySpring Infrastructure Trust, Keppel Infrastructure Trust and Hutchinson Port Holdings Trust. To further examine their volatility beyond simple periodic returns, the capital asset pricing model (CAPM) was also applied to estimate the returns from these trusts. It was found that CMHP, CitySpring and Keppel stocks have stable returns as
compared to Macquarie International Infrastructure Fund (MIIF) and Hutchinson
Port Holdings Trust. The betas for all five firms were found to be less than 1,
indicating that they are less volatile than the market. However, the regression
model for MIIF was found to be unreliable at 95% confidence level.
Keywords
Building, PFM, Project and Facilities Management, Tan Chee Keong Willie, 2014/2015 PFM, Infrastructure Funds
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Date
2015-06-26
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Dissertation