Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.
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Stewart Investors manage investment portfolios on behalf of our clients over the long term and have held shares in some companies for over 20 years. They launched their first investment strategy in 1988.
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Please read the following important information for First Sentier Global Listed Infrastructure Fund
• The Fund invests primarily in global listed infrastructure and infrastructure-related equity or equity related securities worldwide. Investments in infrastructure projects may involve risks including projects not being completed on time and within budget, changes in environment laws and regulations.
• The Fund’s investments may be concentrated in a single and limited/specialist sector or in fast growing economies which may have higher volatility or greater loss of capital than more diversified portfolios.
• Small/ mid-capitalisation securities may have lower liquidity and their prices are more volatile to adverse economic developments.
• The Fund may use FDIs for hedging and efficient portfolio management purposes, which may subject the Fund to additional liquidity, valuation, counterparty and over the counter transaction risks
• For certain share classes, the Fund may at its discretion pay dividend out of capital or pay fees and expenses out of capital to increase distributable income and effectively a distribution out of capital. This amounts to a return or withdrawal of your original investment or from any capital gains attributable to that, and may result in an immediate decrease of NAV per share.
• It is possible that a part or entire value of your investment could be lost. You should not base your investment decision solely on this document. Please read the offering document including risk factors for details.
Prices & performance
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Strategy Overview
Key Facts
Strategy Overview
Key Facts
Source: Lipper, Nav-Nav (with dividend reinvested where applicable)
Acc represents share class with dividends accumulated. M Dist represents share class with monthly distribution of dividends. H Dist represents share class with half-yearly distribution of dividends. Q Dist represents share class with quarterly distribution of dividends. Dividends are not guaranteed and may be paid out of capital. All prices are for indication only. For detail, please refer to the Fund’s factsheet for further details including investment objective & strategy, asset allocation, top 10 holdings, comparison with benchmark (if any) and disclosure.
With effect from 22 September 2020, First State Investments was rebranded to First Sentier Investors. The names of the funds were also rebranded, please view the full list of the fund name changes: Hong Kong Unit Trust (HKUT) / First Sentier Investors Global Umbrella Fund (VCC).
Infrastructure powers the world we live in - and when it comes to on-the-ground- research, our team can be found on site.
Why invest in the First Sentier Global Listed Infrastructure?
Listed infrastructure provides essential services to society, typically making it less sensitive to the economic cycle.
Growth is being driven by long term structural themes such as the build-out of renewable energy; the need to ease urban congestion; and increasing reliance on mobile data.
Gain a liquid and diversified exposure to infrastructure, managed by a specialist team.
How we invest in global listed infrastructure
From digital connectivity to renewable energy, we invest in the long-term themes shaping the world....
Global trends
At First Sentier Investors our Global Listed Infrastructure team researches the market for what we believe are world-leading companies tackling the major infrastructure challenges the world faces.
That search takes us well beyond Australia's borders. Trent Koch, Portfolio Manager, discusses where we are finding the best opportunities.
The potential of solar
The last decade has seen carbon-free renewables, with the help of low cost natural gas, start to displace coal and oil from the developed world's electricity supply. The International Energy Agency predicts that between 2019 and 2024, the world will add enough renewable generation capacity to power the entire United States.
The continued build-out of renewables, and the need to upgrade and expand energy transmission networks, is expected to underpin stable earnings growth across the utilities sector. Consumers and the environment stand benefit from increasing supplies of clean, affordable energy. One of the largest positions in our portfolio is NextEra Energy, a large cap US utility whose assets include regulated utility businesses and clean energy leader NextEra Energy Resources.
Australia is both leading and lagging in the development of solar
While Australia leads the world in rooftop solar, we lag other markets like the US in the development of large scale solar infrastructure, with government policies and incentives less attractive than other markets.
Whether it is solar, wind or water, the opportunity for investors is ever growing. But not all countries are developing at the same pace – making global research and access to global markets vital to investment success.
Australia leads the world in rooftop solar...
… but lags in large scale utility solar
Source: Bloomberg as at 2018.
Source: Australian Photovoltaic Institute, Bloomberg as at 30 November 2019.
Solving urban congestion
On the road from Sydney to Washington
Innovative infrastructure companies are also helping relieve urban congestion around the world. ASX-listed toll road company Transurban operates portfolios of toll roads in Australia and North America, including the 95 Express Lanes in Washington DC. These give commuters a guaranteed speed of at least 90km/h, facilitated by innovative dynamic pricing.
We look at 12-15 toll road businesses globally, and we have found that Transurban’s management and operations are world best practice.
Putting driverless cars on the roadmap
Transurban has transformed from a ‘construction’ company to a company where 40% of employees work in technology. They are preparing for the advent of electric and autonomous vehicles and the changing patterns of road use they will bring. They use military-grade video-capture technology to reduce accidents and congestion on their roads.
An exceptional infrastructure company
With a sustainable yield of almost 5% growing at 5-8% per annum, Transurban offers high quality assets with limited economic sensitivity and pricing linked to inflation – or better.
Peter Meany
Head of Global Listed Infrastructure
Transurban is one of the largest positions in our portfolio
Source: Transurban, First Sentier Investors as at 2020. Chart shows earnings before interest, tax, depreciation and amortizaton. The earnings for 2020 and onwards are expected earnings based on First Sentier forecasts. They are predictive in nature and therefore not guaranteed to occur. They may be affected by inaccurate assumptions, known or unknown risks and uncertainties, and may differ materially from the results ultimately achieved.
Every investment decision impacts our world
Infrastructure companies have service obligations and moral accountability to the communities in which they operate
We have formally integrated analysis of environmental, social and governance (ESG) factors into our investment process for over a decade. ESG considerations account for 24% of a company’s score in our quality assessment and ranking model.
Climate change is the most material ESG theme affecting our investment strategy
In the utilities space, attempts to reduce carbon emissions have significant implications for the way in which electricity is generated, transmitted and distributed. Large-scale capital investment in renewables is being led by large cap, publicly-listed electric utilities.
The replacement of older coal-fired power stations with wind and solar power is expected to present substantial capex opportunities for many utilities over coming years. Looking ahead, climate change also has material implications for energy pipelines, which could face stranded asset risk; and freight railways, whose haulage mix may evolve as coal volumes decline further.
We influence companies towards ESG best-practice, engaging on material issues to achieve specific outcomes
A key issue we address with companies and industry bodies is the subjective nature of the information provided on environmental matters.
Engaging with Kinder Morgan
The board
Pipeline operator Kinder Morgan's board initially recommended voting Against providing methane emissions reporting and a 2 degree scenario analysis report. We believe that as shareholders, we have the right to clear disclosure around how the company monitors, manages and minimises climate change and sustainability-related risks.
Our approach
We requested that Kinder Morgan improve their environmental disclosure procedures, particularly relating to Greenhouse Gas emissions. The company is now working on a new framework which will enable them to provide more information on these topics. US$22 million will be spent on improving their data collection, assessment and production systems.
Disclaimer: Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of First Sentier Investors’ portfolios at a certain point in time, and the holdings may change over time.
Meet the Investment team
