The top-performing alternative asset funds for FY25

Whilst equities enjoyed solid returns in FY25, investors who slept on infrastructure and private market opportunities potentially missed a trick. 

Not only do alternative asset funds add diversification, but some of the return profiles of the top-performing funds were - to say it without adding any mayo - quite healthy. 

So, which alternative asset funds were top of the pops, and what area of the broad church that is alternatives do they focus on?

Keep reading to find out. 

How we compiled these lists

Our performance data is sourced from Morningstar, and the funds listed are available on Livewire’s Find Funds menu (located in the top-right corner of the webpage). Note that this is not an exhaustive list of all Australian equity funds in the market.

Here’s how we filtered the results:

• Fund Type: Managed Fund
• Asset Class: Alternative Assets 

We then manually refined the list based on 1-year returns.

NOTE: While it is an interesting exercise to examine fund performance over a one-year period, most funds recommend minimum investment periods of five years or more. As such, it would be worthwhile to consider longer-term performance across cycles when researching funds or making investment decisions. Past performance is not a reliable indicator of future return. 

The 10 top-performing Alternative Asset Funds in FY25

#1 - Maple-Brown Abbot Global Listed Infrastructure Fund

Managed Fund

Maple-Brown Abbott Global Listed Infrastructure Fund

Alternative Assets

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Fund profile: The Fund is an actively managed fund that invests in global listed infrastructure securities across regulated, contracted and concession assets or networks that provide essential services, with a focus on sustainability and ESG factors. These infrastructure assets typically deliver lower volatility and higher earnings stability as well as higher inflation protection compared with broader global equities. Generally, the securities in the portfolio have a market capitalisation greater than US$500 million.

Fund commentary

The excerpt below is taken from the Maple-Brown Abbott May quarterly fund commentary

We believe the Fund continues to be invested in core infrastructure assets that have high barriers to entry and strong strategic positions. 

We expect that long-dated, stable income streams, like those from infrastructure assets, will be keenly sought by investors and that the sector will benefit from a growing need for additional infrastructure investment. 

We continue to view the sector valuation as being attractive, with ongoing divergence in individual stock valuations providing opportunities. 

#2 - ClearBridge RARE Infrastructure Value Fund Unhedged

Managed Fund

ClearBridge RARE Infrastructure Value Fund – Unhedged

Alternative Assets

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Fund profile: This fund invests in a range of listed infrastructure securities spread across a number of infrastructure subsectors such as gas, electricity and water utilities, renewables, toll-roads, airports, rail and communication infrastructure and across geographic regions in both the developed and emerging markets.

Fund commentary

The excerpt below is taken from the ClearBridge June fund commentary

While the current environment is marked by heightened volatility and uncertainty, we remain confident in our utility and infrastructure assets and their ability to generate defensive, consistent and growing cash flow streams for shareholders over the medium to long term. 

Another key benefit of infrastructure investing is the pass-through of inflation – approximately 90% of our portfolio continues to benefit from direct or indirect inflation pass-through mechanisms.

Currently, we remain somewhat defensively positioned with an emphasis on utilities. We continue to find the sector undervalued, as peak bond yields have resulted in multiples coming down in that space. Nevertheless, the utilities themselves have very strong growth profiles, particularly in the U.S., driven by AI data centre power demand, industry decarbonisation and resiliency spending. 

At the same time, European utilities are getting more capex approved by regulators and are seeing returns tick up as well, providing robust long-term visibility in earnings growth. Further, in terms of tariffs, regulated utilities are largely insulated. Tariffs are unlikely to have a meaningful impact on utility earnings given that they service domestic catchments with electricity, gas and water, and are not directly exposed to international trade. 

Overall, we believe infrastructure’s defensive characteristics and downside protection offer diversification in today’s uncertain market environment.

#3 - ClearBridge RARE Infrastructure Income Fund Unhedged

Managed Fund

ClearBridge RARE Infrastructure Income Fund – Unhedged

Alternative Assets

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Fund profile: The ClearBridge RARE Infrastructure Income Fund - Unhedged Class A Units aims to provide investors with long-term, inflation-linked capital growth and a target net distribution yield of 5% per annum, primarily through investments in listed infrastructure securities across global markets. It is managed by a specialist team in Sydney, focusing on minimising return volatility. The fund invests in various infrastructure subsectors like utilities, renewables, transportation, and communication. 

#4 - 4D Global Infrastructure Fund (Unhedged)

Managed Fund

4D Global Infrastructure Fund (Unhedged)

Alternative Assets

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Fund profile: 

• Aims to identify quality infrastructure companies that are trading below fair value and have sustainable, growing earnings combined with sustainable, growing dividends.
• Currency unhedged and index agnostic, offering investors access to the team’s best ideas globally – not the index-relative best – and quality fundamental analysis, including across emerging markets.
• Countries and companies are assessed equally as part of a fundamental bottom-up team-based investment process, with integrated strategic macro input.
• Responsible investment is integrated into the process and is an important component of investment stewardship.

Important notes about the data

• We excluded listed products (namely ETFs) from this list as they will be covered in other wires, and to keep the focus of this piece on Alternative Assets.
• Fund performance is typically viewed over longer timeframes than one year (i.e. three-year and five-year rolling periods). Past performance is not a reliable indicator of future return. The tables above simply capture the best-performing funds, in their respective categories, for the past 12 months.
• All data is supplied by Morningstar. If you would like to conduct your own research into top-performing funds, you can do so by clicking here.