About us

Infrastructure asset class

Infrastructure assets typically have a low correlation with other asset classes, including listed equities, real estate and fixed income.

The quality and predictability of their cash flows tend to provide for stable returns to shareholders over time. We aim to invest across a range of economic infrastructure sectors.

Portfolio value by investment (at 31 March 2020)

The characteristics we look for in new infrastructure investments

We look to build and maintain a diversified portfolio of assets, across a range of geographies and sectors, whilst adhering to a set of core investment characteristics and risk factors.

The Investment Manager has a rigorous process for identifying, screening and selecting investments to pursue. Although investments may be made into a range of sectors, the Investment Manager typically focuses on identifying investments that meet the following criteria:

Asset intensive business

Owning or having exclusive access under long-term contracts to assets that are essential to deliver the service.

Good visibility of future cash flows

Long-term contracts or sustainable demand that allow us to forecast future performance with a reasonable degree of confidence.

Asset bases that are hard to replicate

Assets that require time and significant capital or technical expertise to develop, with low risk of technological disruption.

An acceptable element of demand or market risk

Businesses that have downside protection, but the opportunity for outperformance.

Provide essential service

Services that are an integral part of a customer’s business or operating requirements, or are essential to everyday life.

Opportunities for further growth

Opportunities to grow or to develop the business into new markets, either organically or through targeted M&A.

Established market position

Businesses that have a longstanding position, reputation and relationship with their customers – leading to high renewal and retention rates.

 

Investing in Infrastructure

James Dawes speaks to Pensions Age about how, and why, pension funds should be looking at infrastructure as an investment opportunity

As at 31 March 2020, the Company has a portfolio of 20 assets, valued at £1.6bn, including nine investments in Economic infrastructure businesses and six investments in the Projects portfolio.

Back to top