Invest in infrastructure with a purpose
The strategy seeks to invest in infrastructure companies that can contribute to or benefit from sustainable development, as defined by the UN Sustainable Development Goals. Given infrastructure assets’ large environmental footprints and social licence to operate, investment in this space will play a central role in working towards these goals. Of the 17 primary SDGs, we have identified six as being particularly relevant to listed infrastructure companies.
Our analysis of company alignment with these SDGs represents a key element of the strategy’s investment process and stock selection decisions.
The full list of SDGs can be found on the United Nations’ website.
An unwavering focus on responsible investment
“We look for infrastructure companies that can contribute to, or benefit from, sustainable development as defined by the UN Sustainable Development Goals”.
Rebecca Sherlock, Global Listed Infrastructure Portfolio Manager
Infrastructure companies are leading a global shift to cleaner energy, next-gen transport networks and increasing mobile connectivity. The First Sentier Responsible Listed Infrastructure strategy is a high-conviction portfolio with an unwavering focus on responsible investment and positive, long-term outcomes.
We find companies solving global infrastructure challenges
Infrastructure companies are long life assets with large environmental footprints and social licences to operate. The asset class is uniquely positioned to provide solutions in the transition to a net zero world.
Whether we are analysing renewables companies, water utilities, toll roads or mobile towers, we look for companies that are contributing to sustainable development and solving challenges around digital connectivity, urban congestion and renewable energy.
We favour assets with high barriers to entry, effective pricing power, sustainable growth and predictable cash flows.
Why invest in Responsible Listed Infrastructure?
Drive positive change - The strategy invests in infrastructure companies that can contribute to or benefit from sustainable development.
Long-term focus - A sustainability lens can provide important insights into long term risks and potential rewards for investors.
Attractive performance – Incorporating sustainability criteria in the investment process can help deliver positive risk adjusted returns.
Inflation protected income – Many infrastructure assets can increase prices in line with inflation, providing a stable and growing distribution yield over time.
Diversification - As well as low correlation with other asset classes, the portfolio itself is well diversified by sector and country, reducing exposure to event, regulatory and political risk.
Liquid and transparent - The US$3 trillion listed infrastructure market gives investors liquidity and daily pricing so investors know exactly what their portfolio is worth.