Videos | February 19, 2016
Peter Meany, Head of Global Listed Infrastructure Securities, provides us with a review of the fourth quarter in 2015 and outlook for the coming quarter.
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.
nature of infrastructure assets means they are typically able to increase prices
in line with inflation, providing a stable and growing distribution yield over
- 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.
- 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
- 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.