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 including commitments (at 30 September 2022)
|Renewing social infrastructure|
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 most or all of 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.
Businesses that meet our Responsible Investing criteria, with opportunities to improve sustainability and ESG standards.