We’ve got a deep and abiding interest in the infrastructure category. That’s what you want when it comes to your money, right? Steady, steely-eyed analyses that respect the absolute gravity of your investment.
Before we choose an investment, every asset in the fund is heavily scrutinised. In our world, this is called “bottom-up analysis.” Risks are assessed, the managers are thoroughly reviewed, and allocations are made based on our overall Fund parameters and objectives. Finally, there is another level of oversight from our Investment Advisory Committee, who debate the recommendation before it is decided by the Board.
Investing in unlisted infrastructure assets sounds scary. In the beginning, when the market was immature, the risks were pretty high, so were some of the returns, and there were also some losses. Now that the market has matured, things have settled down. We know where the hot spots are and, more importantly, how to avoid them.
Just because our investments are unlisted doesn’t mean they are rogue or unstable. They’re simply not bought and sold on the securities exchanges. This used to be extraordinary. Now unlisted investments are becoming the norm.
We understand the benefits of acting conscientiously when it comes to the environment, social responsibility, and governance (ESG). That’s why all of the funds we have invested in are signatories of the United Nations Principles for Responsible Investment (UNPRI). These principles are built into our investment decisions and central to our analyses of new investments.
From an asset standpoint, infrastructure is highly regulated, with oversight from environmental agencies and other regulatory and government authorities. It’s also quite comforting to know that the OECD (Organisation for Economic Co-operation and Development) reports that a healthy and growing infrastructure offers positive socio-economic benefits for the populations it serves.