Money at Work: Fisher Morrison Infrastructure Fund

What is it called and what sort of savings product is it?

The Fisher Morrison Infrastructure Fund is a New Zealand unit trust.

Who is the company behind it?

There are two companies behind the fund, Fisher Funds Management and Morrison & Co. Fisher Funds is well-known as a manager of shares, including several managed funds and three NZX-listed investment trusts; Kingfish, Barramundi and Marlin. Fisher's role is to promote the fund. The other party is Morrison & Co, the infrastructure investor headed by Lloyd Morrison, who announced this week he had been diagnosed with leukaemia. Morrison manages NZX-listed infrastructure fund Infratil and will manage the investments of this fund.

Who is the target market?

Moderate risk investors looking for something which has income characteristics, but also has the potential for capital growth.

What return does it offer?

Carmel Fisher says the fund is aiming for a net yield of 5 per cent annually and expects the fund will have capital growth as well. Infratil has generated an annual return of 18 per cent a year for the past 12 years, however this fund isn't likely to do those sorts of numbers.

When was it launched?

December 2008

What other products is it like or is it competing with?

Infratil is a competitor, however it is listed and has a much more concentrated portfolio of assets which generally are stakes in business. Brook Asset Management has an infrastructure fund too. Macquarie and Babcock and Brown are known as infrastructure investors, however their approach has been to gear up funds, while the Fisher Morrison fund won't take that approach.

Is it long term, short term or medium term?

Infrastructure is considered a long term investment, so the fund suits people with that type of investment horizon.

What is the unique selling point?

This sector is considered reasonably unique as it combines characteristics of growth, but also tends to generate good income streams. Another attraction is that investors get access to the skills of Morrison & Co has an excellent track record in the infrastructure sector.

How strong a stomach do you need for it?

A fund like this has a moderate risk profile as it sit somewhere between bonds and shares.

What's the hitch?

Investors should be aware a fund like this is a long-term investment.

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