Macquarie Makes Global Infrastructure Mark

Over the past few years, many fortunes have been made -- and lost -- through "hot" investment themes such as technology, real estate and commodities. The Macquarie Group of Australia has built its reputation in an arena that is much less glamorous but offers returns that are equally enticing: global infrastructure.

One way U.S. investors can gain exposure to the dividend and capital appreciation offered by this sector is through (MGU Quote) Macquarie Global Infrastructure Total Return, a closed-end fund.

The fund, which was launched in August 2005 and is rated B+ by TheStreet.com Ratings, has returned 42.78% year to date through Nov. 28.

For investors who are bearish on the U.S. economy, Macquarie Global Infrastructure provides two kinds of defensive plays: the steady income of utilities, combined with exposure to foreign markets, including some that are expanding rapidly. While the bulk of the fund's holdings are in the U.S., the U.K., Australia and Canada, it is also invested in India and China.

The fund's prospectus defines infrastructure and utility assets as "underlying foundations of basic services, facilities and institutions upon which the growth and development of a community depends." This description reinforces the defensive nature of such investments and highlights their bondlike characteristics, such as the regular streams of income these assets produce through mechanisms such as tolls. By sector, 31.87% of assets are in electric utilities or infrastructure, 12.79% in water, 10% in engineering and construction, 8.55% in commercial services, 6.97% in gas and 5.23% in investment companies.

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