Resolution Capital infrastructure fund delivers a standout year across all major classes

Infrastructure Fund Beats Benchmarks Across Every Major Class

Resolution Capital Global Listed Infrastructure Fund (ASX:RII) turned in a notably strong year, with net returns ranging from 15.7% to 25.5% across its A, B and C unit classes. Each outperformed the relevant FTSE Developed Core Infrastructure 50/50 benchmark: A Class by 6.3 percentage points, and both B and C Class by 6.8 percentage points.

The return figures are not directly interchangeable. The B and C classes use Australian dollar hedging for the capital component of overseas securities, while fee structures also differ. Even so, the breadth of the outperformance is the central feature of the annual report, particularly for C Class, which generated the highest return and accounted for most of the fund’s distributions.

Net Assets More Than Double as Investor Applications Accelerate

Profit attributable to unitholders rose to $56.0 million in Australian currency from $18.5 million a year earlier. The fund’s listed equity portfolio expanded to $439.9 million from $169.0 million, while total net assets attributable to unitholders reached $424.7 million, up from $170.7 million.

Fund flows were a significant part of that expansion. Applications generated $291.8 million during the year, compared with $69.6 million in redemptions, before allowing for distributions and market movements. Unit numbers in the C Class increased to 245.6 million from 111.2 million, while B Class units listed on the ASX under RII rose to 25.4 million from 8.9 million.

Distributions Rise Sharply, Led by C Class

Total distributions paid or payable increased to $25.7 million from $4.2 million. C Class accounted for $22.1 million of the latest amount, including a June distribution of $19.5 million, while A Class contributed $2.0 million and B Class $1.6 million. The reported cents-per-unit figures also differed materially, reflecting the different size and structure of each class.

The fund launched a new Z Class on 28 May 2026, but it ended the reporting period with only 100 units and no distribution. Its commercial significance, if any, will therefore emerge in later reporting rather than in this year’s numbers.

Global Exposure Remains the Main Risk

The portfolio was concentrated in electric companies, engineering and construction, and gas, which represented approximately 39%, 15% and 14% of the investment portfolio respectively. The report says a 10% movement in equity prices, with other variables unchanged, would have affected net assets by approximately $44.0 million at year end.

Currency management also expanded alongside the portfolio. Forward foreign exchange contracts had a notional value of $1.17 billion at 30 June 2026, compared with $137.1 million a year earlier, with the contracts primarily used to hedge B and C Class exposure rather than to gear the portfolio. PwC issued an unmodified audit opinion, and the report identified no significant events after 30 June 2026.