Dear Fintax Investor
Please find attached January’s fund fact sheets as well as a commentary by the MGIM investment team.
Last month, both funds protected investor capital with the Gowth Fund delivering +0.3% and the Balanced Fund +0.1% relative to -0.5% for the MSCI All Countries World Index and -1.0% for the Global Fixed Income Index.
One of the diversification asset classes MGIM use in the portfolios is infrastructure. Both funds have investments in the Maple-Brown Abbott Global Infrastructure Fund. The relative valuation between listed infrastructure and global equities is the most attractive it has been since the Global Financial Crisis. MBA have positioned the portfolio towards regulated electric utilities in the U.S. and toll road operators (specifically, the English Channel tunnel operator – Getlink), steering clear of airports due to lower footfall in the near to medium term. For now, however, this fund remains a relatively small holding in the Fintax Funds (2.4% in Growth, 3.3% in Balanced) given MGIM’s view of a strong backdrop for equity markets in 2021, driven by earnings gains due to the release of pent-up demand rather than higher valuations.
Please click on the link below to view an investment update video by one of the fund’s co-portfolio managers.