Videos | March 03, 2014
How did Global Listed Infrastructure perform in Q4 2013? To view from the First State Global Listed Infrastructure team as they provide their latest views and insights into the industry.
Why invest in Global Listed Infrastructure?
- Over the past decade global listed infrastructure has delivered higher returns than global equities with a lower level of risk. These highly attractive risk-adjusted returns have been underpinned by assets with high barriers to entry, strong pricing power, predictable cash flows and sustainable growth.
- The nature of infrastructure assets means they are typically able to increase prices in line with inflation, providing a stable and growing distribution yield over time.
- Infrastructure can offer diversification benefits to an investment portfolio. Underpinned by structural growth and inflation protected income, global listed infrastructure has delivered higher returns with lower risk than global equities.
Experienced team, established process
- Our Global Listed Infrastructure Securities team combines specialised knowledge with a globally consistent, disciplined investment process that is solely focussed on infrastructure. First State Investments has a long history of infrastructure investment, with investments in direct infrastructure since 1994.
- We are pragmatic in our approach to investing and seek to exploit market inefficiencies by combining attractive value with superior quality characteristics. The Fund employs an active, bottom-up security selection process that aims to exploit market inefficiencies. The team also makes more than 500 company visits each year to ensure right stock selection decisions.
- We believe best investment ideas should create a portfolio not a benchmark. We target stocks where the market underestimates the level and quality of sustainable free cash flows. Through this, we seek to earn excess returns by employing a rigorous stock selection process – leading to high conviction stock positions – with strict portfolio management risk controls.