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The NEXTDC Ltd (ASX: NXT) share price has edged higher on Friday following the release of its annual general meeting presentation.

At the time of writing, the data centre operator’s shares are up slightly to $12.82.

What did NEXTDC talk about at its annual general meeting?

The company started by giving investors a reminder of how it performed in FY 2020.

In FY 2020 NEXTDC delivered a 14% increase in revenue to $205.2 million and a 23% lift in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $104.6 million.

This was driven by increasing demand from new and existing customers, which led to contracted utilisation rising 33% to 70MW and interconnections lifting 19% to 13,051

NEXTDC CEO, Craig Scroggie, commented: “I would like to emphasise the significance of the growth in our contracted utilisation which is up by 33% to 70MW. We experienced a record level of sales during the reporting period with contracted utilisation increasing by 17.4MW or 33%, a number which represents by far the single largest sales performance in the company’s 10-year history.”

“This included the announcement of significant new contract wins in Victoria and New South Wales, with Victoria in particular exhibiting very strong growth in customer demand, both in the form of contract wins as well as future customer commitments to expansion options and reservations,” he added.

FY 2021 outlook.

At the event the company also provided an update on its outlook for FY 2021. However, no changes have been made to its guidance for the financial year.

NEXTDC continues to expect data centre services revenue of $242 million to $250 million. This will be up 21% to 25% on FY 2020 and is expected to be driven by strong growth in recurring data centre services revenue, underpinned by long-term customer contracts.

The company’s underlying EBITDA guidance remains $125 million to $130 million. This represents year on year growth of 20% to 24%. Management notes that its second-generation facility performance is driving scale and earnings growth Furthermore, operational excellence continues to deliver efficiencies in energy management and purchasing.

International expansion?

Based on comments at its meeting, NEXTDC could soon be operating in international markets.

Mr Scroggie commented: “Our company continues its disciplined expansion, and we remain focussed on developing our people, our systems and our processes to take full advantage of the exponential opportunities ahead. We will also continue to invest on exploring opportunities for regional expansion. We have offices in Singapore and Tokyo where we continue to work with key customers and talk to respective governments about potential expansion in the region.”

More reading

• 5 things to watch on the ASX 200 on Friday
• Macquarie Telecom (ASX:MAQ) share price surges on contract win
• The 5 best-performing ASX 200 shares so far this year
• Why ResMed (ASX:RMD) and these ASX shares just hit record highs
• Which 5 ASX shares hit 52-week highs on Friday?

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Quickstep Holdings Limited (ASX: QHL) share price is climbing higher today on news of an acquisition agreement.

At the time of writing, shares in the carbon fibre composites manufacturer are trading up 4.94% to 8.5 cents.

What’s the agreement?

Quickstep has agreed to the terms to purchase Boeing Defence Australia’s aerospace maintenance, repair and overhaul (MRO) capability.

Base in Tullamarine, Victoria, Boeing Australia Component Repairs (BACR) manages a wide range of aircraft structures for both commercial and military use. The company fields recent experience working with Boeing, Airbus, Embraer and Bombardier aircraft. This includes fighter aircraft such as the F/A Hornets, military transport planes C-130J Hercules and helicopter CH-47 Chinooks.

In addition, Quickstep advised it was seeking to expand the scope of MRO work offered. The company hopes to carry out service functions on the stealthy F-35 jet alongside other military and commercial contracts. As key approvals all require major regulatory bodies to be on board, Quickstep is working towards obtaining the certifications needed.

Terms of the deal

Under the purchase agreement, Quickstep will acquire operating assets, inventories and certain contracts from BACR for $2.64 million.

A top tier Australian bank has committed to funding the purchase of a refinanced package for Quickstep’s existing long-term loan. Pleasingly for the company, the rate will be offered at a reduced margin.

Completion of the deal is expected to be at the end of the calendar year, provided Quickstep obtains necessary approvals. It’s anticipated that the acquisition will be positively contributing to earnings per share (EPS) by the second year of operation.

Should BACR terminate the agreement if Quickstep fails to uphold its end of the bargain, a termination fee will apply. This will be payable to BACR for the amount of $2 million.

What did management say?

Commenting on the acquisition, Quickstep CEO Mark Burgess said:

We are delighted to soon be welcoming highly capable aerospace employees from the BACR business to Quickstep. The acquisition of this important national capability aligns well to our business strategy, positions us to grow our defence sustainment business and opens up new opportunities in the high value commercial aftermarket as we move toward post- pandemic recovery.

Boeing Defence Australia, vice president and managing director Scott Carpendale added:

We’re pleased that this agreement will offer Quickstep the ability to grow its unique sovereign capability to the benefit of regional commercial and defence customers. We look forward to continuing to work with Quickstep on new opportunities to increase their support of Boeing customers locally and globally.

Quickstep share price summary

The share price for Quickstep hasn’t been too positive for the past year. Shareholders would have seen their value drop by more than 40% if they bought 12 months ago. However, the Quickstep share price has made a strong recovery in November alone, gaining more than 15% from 7 cents.

More reading

• The Quickstep (ASX:QHL) share price is shooting higher today. Here’s why
• Quickstep (ASX:QHL) share price edges up on positive FY20 results

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Knowing which shares fund managers are buying and selling can be advantageous for investors.

This is because they have the resources to employ analysts to research companies and identify investment opportunities. Something which simply isn’t feasible for retail investors.

With that in mind, I like to take a look at monthly reports from fund managers to see what they are doing.

The Concentrated Leaders Fund Ltd (ASX: CLF) has just released its latest monthly update and revealed that it is still outperforming the market in the current financial year. This could make it well worthwhile looking at what it is doing.

What is the Concentrated Leaders Fund doing?

During October the fund’s portfolio returned +0.87% on a gross basis versus the benchmark return of 1.93%. This underperformance was largely due to its underweight exposure to the banks and financials.

Its underweight exposure to consumer staples also detracted, while being underweight to materials and energy delivered a positive outcome.

Nevertheless, the fund is still beating the market financial year to date with a return of +2.36% on a gross basis. This compares to the benchmark’s +1.48% return, which represents an outperformance of +0.88%.

Two of the best performers for the fund during the month were TechnologyOne Ltd (ASX: TNE) and Seven Group Holdings Ltd (ASX: SVW).

TechnologyOne recorded its first monthly gain since April with an impressive 13% rise. It notes that this was driven primarily by improving sentiment and expectation that previously delayed IT capex by several corporates would resume.

Whereas Seven Group shares rose 8.4% over the month. This appears to have been driven its push for control over building products company Boral Limited (ASX: BLD).

A key detractor to its performance was Bravura Solutions Ltd (ASX: BVS). Its shares fell 13.8% during the month despite announcing the acquisition of Delta Financial Systems and a contract win with Aware Super. The fund manager believes Bravura is continuing to suffer from negative investor sentiment following its FY 2020 result.

Outlook.

The Concentrated Leaders Fund is continuing to operate with a degree of caution, but is now more actively looking to deploy capital with the improvement in the macro environment and reduced political and virus related risk.

It also notes that value shares appear to be back in favour at the expense of growth shares.

It commented: “Markets have rallied strongly thus far in November, but it has been the major reversion in ‘style’ which has been the most interesting. Since the vaccine has been announced, ‘Value’ has staged a dramatic recovery, while ‘Growth’ has sold off heavily.”

“While it is too early to know how this plays out fully, the recent losers have been the big winners. This makes the rally in equity markets more sustainable as it allows ‘cheap’ companies to normalize and hence drive the market higher. This is what we are currently seeing with the Australian banks – despite their ongoing risks.” It added.

More reading

• These ASX dividend shares beat term deposits and savings accounts
• 2 ASX dividend shares with better yields than term deposits
• Why the Boral (ASX:BLD) share price is up 6% today
• Why the AMP (ASX:AMP) share price could be set to rocket higher today
• Buying these ASX dividend shares could solve your income needs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Australian drug development company Noxopharm Limited (ASX: NOX) has announced a major breakthrough this morning on its DARRT cancer therapy drug.  The announcement shot the share price of NOX up by 11% to 63 cents at the opening bell.

What was the breakthrough?

Noxopharm advised that a recent discovery by Weill Cornell Medical College in New York has significantly validated the company’s novel DARRT treatment program that comprises Veyonda and radiotherapy. Veyonda is a clinical-state drug candidate designed to boost the effectiveness of both chemotherapy and radiotherapy. It enhances the cancer-killing effect of standard chemotherapy and radiotherapy, thereby enabling lower doses of these toxic therapies to be used. It also seeks to activate the body’s immune cell function to attack those cancer cells that have survived the initial treatment.

The company the Weil Conell discovery relates to how Veyonda combines with radiotherapy to produce whole-of-body anti-cancer response known as an ‘abscopal response’ in patients with metastatic cancer. A complete abscopal response is regarded as the ultimate form of treatment for metastatic cancer.

Up to now, the abscopal response has remained an elusive phenomenon with the mechanisms behind it remaining a mystery. Now, the Weill Cornell study – which was recently published in the scientific journal, Nature Immunology – has shed light on the mechanism, finally offering a path to making it more commonplace. This mechanism happens to be one of the ways that Veyonda works as an anti-cancer agent.

Commenting on the breakthrough, Noxopharm CEO Graham Kelly said:

Our experience shows that this is no dream. The clinical data shows that Veyonda very clearly is boosting the chances of triggering an abscopal response. The Weill Cornell discovery, combined with what we learnt from the DARRT-1 study about Veyonda dosing, means we go into the upcoming DARRT-2 study with a high degree of confidence that we are on the edge of a major breakthrough in cancer therapy.

What is Noxopharm?

Noxopharm is a clinical-stage Australian drug development company with offices in Sydney and New York. The company has a primary focus on the development of Veyonda. Earlier this week, Noxopharm was in the spotlight when it joined a pilot study (IONIC-1) to explore the ability of Veyonda to boost the effectiveness of Bristol Myers Squibb’s nivolumab (Opdivo) for the treatment of cancer.

How has Noxopharm’s share price performed in 2020?

The Noxopharm share price has gone through the roof, rising by 125% this year, after various positive announcements and the general bullish state of the health sector pushed it higher. The share price is trading at 63 cents, giving it a market cap of $120 million.

More reading

• Why the Noxopharm (ASX:NOX) share price surged 8% higher today

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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High-yield dividend stocks could offer much more than just a generous passive income. Reinvesting dividends could lead to a growing retirement portfolio that provides a worthwhile income in older age.

Furthermore, the low valuations on offer across the stock market and the potential for rising demand for high-yield opportunities may help to lift share prices. This may produce capital growth that improves an investor’s retirement outlook.

Reinvesting a passive income from dividend stocks

Dividend stocks could offer an attractive total return in the long run. A large proportion of the stock market’s past total returns have been derived from the reinvestment of dividends. Therefore, dividend shares may be of interest to a wider range of investors than just those individuals who are seeking a passive income today.

In fact, the stock market crash has caused many income shares to trade at low prices. This means that they offer high yields in many cases. As a result, they could provide scope to reinvest significant sums of capital in the stock market on a regular basis. Over time, this could lead to a growing portfolio that improves an investor’s retirement prospects.

Low valuations after the stock market crash

The 2020 COVID-19-related market crash also means that dividend stocks could offer capital growth potential. In some cases, they trade at low prices due to uncertain near-term operating outlooks that could negatively impact on profitability. However, some income stocks with low valuations have the financial strength and strategies to overcome their short-term risks so that they can deliver improving profitability over the long run.

Therefore, investors who identify financially-sound businesses today while they trade at low prices could benefit from a long-term stock market recovery. With indexes such as the FTSE 100 Index (INDEXFTSE: UKX) having always returned to previous highs after their various bear markets, the long-term turnaround prospects for undervalued high-yield income shares appear to be relatively bright.

Increasing demand for income shares

Dividend stocks may also deliver strong capital growth that boosts an investor’s retirement prospects because of a lack of other passive income opportunities. For example, low interest rates mean that the returns on cash and bonds are relatively low. Their returns may even fail to keep pace with inflation over the long run. Similarly, high house prices may mean that the yields on property investment are somewhat disappointing relative to income shares.

This could mean that demand for income shares increases over the coming years. The end result could be rising prices for income shares that produces capital gains for their holders. As such, now could be the right time for investors to build a diverse portfolio of dividend shares that offer good value for money and solid financial positions. They appear to have the potential to produce a retirement portfolio that can provide a generous passive income in older age.

More reading

• Noxopharm (ASX: NOX) share price shoots higher on major breakthrough
• Why the Mach7 (ASX:M7T) share price is zooming 9% higher today
• Lovisa (ASX:LOV) share price rockets higher on European acquisition news
• Jumbo (ASX:JIN) share price on watch following signed Lotterywest agreement
• Is the Magellan Infrastructure Fund (ASX:MICH) share price a buy?

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mach7 Technologies Ltd (ASX: M7T) share price has stormed higher this morning following the release of an announcement.

In early trade the enterprise imaging platform provider’s shares are up 9% to $1.11.

What did Mach7 announce?

This morning Mach7 announced that it has signed a seven-year contract with Trinity Health for the license and associated support services for its eUnity enterprise viewer. The total value of this contract is A$5.26 million.

Trinity Health is the fifth largest healthcare Integrated Delivery Network (IDN) in the United States and this contract will see Mach7’s eUnity enterprise viewer being installed across multiple facilities within its 92 hospitals located across 22 US states.

It serves approximately 30 million people across these states, employs about 123,000 colleagues, including 6,800 employed physicians and clinicians, and has annual operating revenues of US$18.8 billion and assets of US$30.5 billion.

What now?

According to the release, the software deployment will occur in stages as software licenses are ordered by Trinity Health.

Mach7 expects to receive the first software license orders during the current quarter, and the majority of the orders within FY 2021.

Management advised that the associated software license revenue is likely to be recognised very shortly after the order is received, upon the license delivery and software deployment. Whereas support and maintenance fees will commence one year after deployment and will continue for a period of six years.

Mach7’s CEO, Mike Lampron, commented: “Mach7 is delighted to be partnering with Trinity Health, a respected and leading health care provider in the U.S.”

“This is Mach7’s first material contract award since our acquisition of Client Outlook and highlights our investment thesis around the importance of a world-class Enterprise Viewer to an Enterprise Imaging Strategy. This announcement represents a launching point for a larger and more integrated relationship with Trinity involving our vendor neutral archive and diagnostic viewing solutions,” he added.

More reading

• This under-the-radar ASX tech company’s shares are up 150% since March
• 3 growing small cap ASX shares
• Why Bendigo and Adelaide Bank, Mach7, National Storage, & Unibail-Rodamco-Westfield are dropping lower

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lovisa Holdings Ltd (ASX: LOV) share price has been rocketing higher on Friday morning after making an acquisition announcement.

At the time of writing the fast fashion jewellery retailer’s shares are up 15.5% to $11.59.

What did Lovisa announce?

This morning Lovisa announced the acquisition of the European retail store network of German wholesaler beeline GmbH.

This acquisition is expected to add more than 80 stores to the Lovisa global store network across six European countries.

According to the release, the beeline retail business currently operates 114 retail stores in seven countries selling fashion jewellery and accessories under the SIX and I AM brands.

Lovisa will acquire the shares of the six retail trading entities of the beeline group in Germany, Switzerland, The Netherlands, Belgium, Austria and Luxembourg, with all continuing stores to be rebranded to trade as Lovisa stores.

The shares in the six beeline entities will be acquired for a total purchase price of just 60 euros (that’s not a typo). Beeline will ensure a cash level of the entities of 9.87 million euros in aggregate, with no financial debt to be taken on as a result of this transaction.

In addition to this, Lovisa has also entered into a put option agreement in relation to the acquisition of beeline France and its store network of 30 stores.

This put option provides beeline with the option to sell the shares in beeline France to Lovisa following the completion of mandatory consultation with its employee works council in the country. The company intends to provide a further update upon successful completion of this process.

What now?

Management advised that the acquisition of each country is to be completed progressively from 1 March 2021 through to end May 2021.

The combined cash requirement for fit-out and inventory for the conversion of stores to Lovisa is expected to be less than 5 million euros.

As part of the transaction, upon completion, Lovisa will take over approximately 3 million euros of bank guarantees associated with the leases of the acquired beeline entities, as well as provide a further 3 million euros bank guarantee to the vendor to support its obligations under the share purchase agreement. These guarantees will be supported from existing credit facilities.

Lovisa’s Managing Director, Shane Fallscheer, commented: “We are very excited that this transaction gives us the opportunity to add six new countries to our global store network, and provides us with a strong base and quality team to grow the Lovisa brand further in these markets into the future as part of our ongoing global rollout strategy.”

Trading update.

Lovisa also provided investors with an update on its performance in FY 2021.

The company reminded the market that its 24 stores in France and 39 of its stores in the UK are currently temporarily closed as a result of government-imposed lockdowns.

However, the remainder of its store network has seen a continuation of the improved sales trend previously reported.

It notes that its comparable store sales for the first 19 weeks of FY 2021 are down 9.2% on the prior corresponding period. This is being driven by the continued stronger performance from those markets that have been re-opened longest and with the least restrictions in place. Australia and New Zealand continue to be its best performing regions.

More reading

• Best and worst ASX retail stocks to own in the COVID recovery
• Why IDP Education, Perseus Mining, Lovisa, & Tyro shares are dropping lower
• Why the Lovisa (ASX:LOV) share price is dropping lower today
• 4 ASX shares to buy for a rare Christmas surprise

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Jumbo Interactive Ltd (ASX: JIN) share price will be on watch this morning after the company announced a signed agreement with Lotterywest.

What does Jumbo do?

Jumbo is Australia’s largest digital lottery retailer, operating through its flagship service, Oz Lotteries.

Jumbo runs both national and charity lotteries, as well as develops and supplies software platforms to other lottery companies. Its in-house digital platforms aim to create an engaging and entertaining experience for all customers.

What was signed?

According to the release, Jumbo subsidy TMS Global Services signed an agreement with the Western Australian state government-owned and operated, Lotterywest.

The deal will see Jumbo provide its online software platform and services to Lotterywest for up to the next 10 years. This follows on from the binding term sheet signed and announced to the market on 29 September.

Jumbo CEO, Mr Mike Veverka, commented on the milestone partnership:

I am pleased that the Lotterywest Agreement has now been signed on time and on terms as anticipated. This is a major achievement for Jumbo securing our first government client setting up a solid long-term partnership and providing strategic opportunities for Jumbo.

Terms of the deal

Under the agreement, Jumbo will receive a 9.5% service fee for every customer transaction through the white label platform. The service fee will cover Jumbo’s software operation, technical and customer support, and development services and costs.

The agreement is to be a three-year initial term, with the option for a further three and four years. The extension options are to be decided by Lotterywest.

Customer ownership will be transferred to Lotterywest at the moment the customer opts in to the white label platform.

Lotterywest will oversee the marketing strategy for players, and Jumbo will manage customer support. This will be conducted on the white label platform, and Jumbo will only be able to market to customers by approval from Lotterywest.

Lastly, Lotterywest has the option to transition white label players to its website and app for 12 months from the go-live date. Both parties expect to have completed software integration by late December.

Jumbo share price summary

The Jumbo share price has made a solid comeback of 83% since falling to as low as $6.99 in March. For the calendar year to date, the shares in the lottery retailers are down 14%, and down 41% from their 52-week high.

Jumbo has a market capitalisation of $800 million and a price-to-earnings (P/E) ratio of 31.1.

More reading

• 2 ASX mid cap shares that are growing strongly
• Leading brokers name 3 ASX shares to buy today
• Why this broker has rated Jumbo (ASX:JIN) shares a buy
• Where to invest $1,000 into ASX shares this week
• Jumbo (ASX:JIN) share price drops lower following Q1 update

Aaron Teboneras owns shares of Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Is the Magellan Infrastructure Fund (Currency Hedged) (ASX: MICH) share price a buy?

It’s an active exchange-traded fund (ETF) that invests in global infrastructure. It’s currently an ASX share rated as a buy by the Motley Fool Dividend Investor service.

What’s an active ETF?

Not every ETF is passive that just follows an index. Typical ETFs such as Vanguard Australian Shares Index ETF (ASX: VAS) just aim to follow the ASX 300.

But there are some fund managers that offer their funds in an open-ended fund structure that can be invested in via the ASX. The key difference is that fund managers are the ones that are making the share picks, rather than an automatic index weighting.

Which manager manages this ETF?

The Magellan Infrastructure Fund is managed by Magellan Financial Group Ltd (ASX: MFG), which has billionaire investor Hamish Douglass as the chair and chief investment officer.

Magellan is best known for being an investment manager that focuses on international shares, with $78.3 billion of funds invested with Magellan’s international strategy. However, Magellan has also $17.86 billion invested in infrastructure shares.

The actual Magellan Infrastructure Fund is managed by Gerald Stack.

What does Magellan Infrastructure Fund aim to do?

According to Magellan, it aims to hold 20 to 40 shares and tries to deliver the stable returns offered by the asset class, while protecting returns from currency movements.

Magellan says that the infrastructure asset class is characterised by monopoly-like assets that face reliable demand and enjoy predictable cashflows. Potential investments that meet these criteria are expected to achieve strong underlying financial performance over medium- to long-term timeframes, which should translate into reliable, inflation-linked investment returns.

Magellan has a particular process for identifying infrastructure. The underlying business must provide a service that is essential to the efficient functioning of a community, while generating cash flows that are not subject to external risks such as commodity prices. Magellan also evaluates other criteria, such as gearing levels, sovereign risk, regulatory risk and reporting transparency, which, if failed, will result in exclusion from the investment universe.

The fund manager believes that by excluding businesses that fail to meet these criteria, the universe consists purely of companies that enjoy reliable demand and generate predictable cash flows. This analysis includes evaluations of a company’s external environment, its business-specific issues, its historical financial performance and its valuation.

What shares are in the fund?

In its latest monthly update, Magellan Infrastructure Fund said that its largest 10 holdings, in alphabetical order, were: American Water Works, Atmos Energy Corporation, Crown Castle International, Enbridge, Eversource Energy, Red Electrica Corporation, Sempra Energy, Transurban Group (ASX: TCL), Vopak and Xcel Energy.

At 31 October 2020, it also had a cash position of 10% of the portfolio.

Whilst USA shares represents the biggest country allocation, it’s less than half of the portfolio at around 42%. Europe, Canada, Latin America, the UK and Asia Pacific are also represented.

How has it performed?

Magellan quotes its returns as net returns, which is after the fees – including the management fee of 1.05% per annum.

Over the past four years, the Magellan Infrastructure Fund has returned 5.5% per annum, outperforming the S&P Global Infrastructure Net Total Return Index by an average of 4.2% per annum.

Is the Magellan Infrastructure Fund share price a buy?

It’s currently trading at a slight premium to its intraday indicative net asset value (NAV) per unit of $2.9165.

The fund is still rated as a buy by the Dividend Investor service who said it’s “a good investment idea for those looking to benefit from exposure to listed, global infrastructure. It’s a simple and easy solution for those looking to diversify their investments, providing a nice hedge against some of the more volatile stocks elsewhere in the market.”

More reading

• One ASX infrastructure share to consider for dividend income today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Magellan Infrastructure Fund. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Exchange-traded funds (ETFs) continue to soar in popularity, attracting a record amount of money from Australian investors last month.

According to Betashares, October was the second consecutive month the Australian ETF industry broke the net inflow record. It added $2.3 billion under management after grabbing $2.1 billion in September.

Those two months mark the only period in history that the monthly figure has exceeded $2 billion.

The Australian ETF industry is now worth $73.8 billion, which is also another all-time record.

Two factors made ETFs attractive in October, according to Betashares head of strategy Ilan Israelstam.

“While global equities pulled back for the second successive month, the Australian market was up by 1.9% — prompting investors to increase their exposure to domestic equities,” he told The Motley Fool.

“Secondly, we saw some rotation into previously out-of-favour sectors, especially the banks, which of course make up a significant proportion of the local sharemarket. The financial sector was up around 6% over the month.”

Israelstam expects more records to be broken in the coming period.

“Over the last few months there has been an increase in investor confidence, as the market rally from the lows of March have been sustained,” he said.

“This has seen investors increase their exposures to equities – and Australian and international equities were the two ETF categories that saw the biggest inflows in October.”

It’s not all beer-and-skittles for the local industry though. Betashares itself and AMP Limited (ASX: AMP) are shutting down all three ETFs they jointly run, announcing last week that the last day of trade will be 4 December.

Who are the most popular ETF providers?

Among the ETF providers, Betashares and Vanguard are dominating. They’ve each attracted more than $4.3 billion of investment so far this year.

iShares is a very distant third with $2.3 billion of year-to-date inward flow.

At the other end of the league table, Platinum is not having a good year, losing $50 million out of its ETFs.

Top 5 ETF providers: most money in

ETF provider	Inflow year-to-date	% of Australian industry
Betashares	$4.35 billion	27.8%
Vanguard	$4.33 billion	27.6%
iShares	$2.32 billion	14.8%
VanEck	$1.66 billion	10.6%
ETF Securities	$1.13 billion	7.2%
Source: Betashares. Table created by author

Bottom 5 ETF providers: most money out

ETF provider	Inflow year-to-date	% of Australian industry
Platinum	($50.03 million)	(0.3%)
K2 Global	($5.32 million)	0.0%
Schroder	($1.76 million)	0.0%
Antipodes	($0.68 million)	0.0%
Kapstream	$3.3 million	0.0%
Source: Betashares. Table created by author

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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