With a surging need for more power supply to secure production and to meet growing household demand, we at Infinitas considered Duet Group a suitable target. Motivating our initial investment in July 2015, Duet Group was offering an 8% yield and almost 10% forecasted distribution growth.
In October 2015, subsequent purchases were made, and we increased our holding again for two more times in April 2016 and May 2016 as we were continuously convinced of its attractive and reliable yield. In April 2017, this company’s potential was identified by Hong Kong infrastructure giant Cheung Kong, who then acquired Duet Group for $7.4 billion dollars. We exited this investment as a result of this acquisition and sold our holding at a substantial premium.
As a result, Infinitas achieved a 19.7% p.a. total gross return from this investment over holding period of only 1.7 years.
¹See for example S&P/ASX200 Utilities Index.
*The performance was calculated as at 30 June 2018. Past performance is not necessarily indicative of future performance.