- The strategy
- Explore the funds
- Targeting companies with stable, inflation-linked cashflows that grow over time
- Integrating ESG and sustainability factors throughout the investment process
- Experienced team including co-founders who have worked together for more than 15 years
We use a tight definition of infrastructure assets with low-volatility cashflows and inflation protection to achieve diversification benefits with other asset classes, such as global equities.
Our investment philosophy
We invest in listed infrastructure companies across the globe that provide essential services to society, typically physical network monopolies such as toll roads, water utilities, electric grids and telecommunication towers. We believe that infrastructure assets have diversification benefits when combined with other asset classes. We use a tight definition of infrastructure assets by considering companies with low-volatility cashflows and inflation protection capabilities, to achieve a different risk and return profile to global equities, and over the years we have witnessed the more defensive nature of these assets, particularly in down markets.
In our view, this defensiveness is due to the fact these infrastructure businesses provide essential services to a large population, are fundamental to the functioning of society and are critical to future economic growth. They are also less vulnerable to competition, issues affecting the economy and/or commodity prices than companies under a broader infrastructure definition, such as ports and satellites.
Since infrastructure assets are long-term, privileged assets, we believe they need to be socially minded and sustainable, which is why we embed ESG and sustainability considerations into the investment process – both to mitigate risks and to identify opportunities. We seek companies that are adapting to and finding investment opportunities in environmental initiatives, such as the energy transition.
We see significant trends in infrastructure with associated investment opportunities. These include decarbonisation, particularly in the utility space, the electrification of society and digitalisation, where infrastructure is needed to support the transition. We believe there is a shortage of infrastructure globally and that some of our listed companies will play a key role in the development and enhancement of infrastructure for decades to come.
Finally, by setting strict assets under management capacity limits for our strategy, we can ensure the portfolio only consists of our best ideas, and we can move in and out of stocks quickly if necessary.
Our investment approach
We consider potential investments from a strictly selected infrastructure Focus List of around 110 companies across more than 20 countries based on our definition of infrastructure, which is tighter than most peers and all infrastructure indices. Stocks on the Focus List are those we believe provide the strongest combination of inflation protection and low volatility.
We use a fundamental bottom-up approach to identify the key drivers of the business, such as how it earns revenue, the link to inflation, balance sheet strength, how it is regulated and how its contracts or concession agreements work. By conducting deep, fundamental research, meeting with the companies and regulators and building financial models on the companies, we can determine if the cashflows or earnings display low volatility and how the inflation protection works. This helps us assess the valuation of the company based on long-term cashflow analysis. As well as performing well on environmental matters, we look for companies that have good governance, where the management is aligned with us as shareholders, has a sound strategy and a good track record. We combine this bottom-up research with a top-down approach to managing macro-economic risks.
We take a high conviction approach to ensure our strongest stock views are included in the portfolio. As a result, the strategy is expected to have between 25 and 35 global investments at any one time.
While we have a tight definition of infrastructure and strict capacity limits, we remain flexible enough to develop bespoke solutions for clients.
Our experienced, aligned team
The Maple-Brown Abbott Global Listed Infrastructure business, established in 2012 as a partnership between the founding Principals and Maple-Brown Abbott Limited, operates as a boutique within a boutique. The Co-Founders, who are also Portfolio Managers, have worked together for more than 15 years, 10 years at Maple-Brown Abbott and prior to that at Macquarie, and are supported by a high-calibre team including a fourth portfolio manager and an ESG specialist.
We pride ourselves on having a deep, long-term alignment with our clients. The founding partners and the team own 54% of the equity in the Global Listed Infrastructure business and senior members of the team invest in the strategy alongside our investors.
A dedicated, experienced and focused team of infrastructure investors.
Co-Founder and Managing Director, Global Listed Infrastructure
Co-Founder and Portfolio Manager, Global Listed Infrastructure
Co-Founder and Portfolio Manager, Global Listed Infrastructure
Portfolio Manager, Global Listed Infrastructure
*The Zenith Fund Awards were issued on 14 October 2022 by Zenith Investment Partners (ABN 27 130 132 672, AFSL 226872) and are determined using proprietary methodologies. The Fund Awards are solely statements of opinion and do not represent recommendations to purchase, hold or sell any securities or make any other investment decisions. To the extent that the Fund Awards constitutes advice, it is General Advice for Wholesale clients only without taking into consideration the objectives, financial situation or needs of any specific person, including target markets where applicable. Investors should seek their own independent financial advice before making any investment decision and should consider the appropriateness of any advice. Investors should obtain a copy of and consider any relevant PDS or offer document before making any investment decisions. Past performance is not an indication of future performance. Fund Awards are current for 12 months from the date awarded and are subject to change at any time. Fund Awards for previous years are referenced for historical purposes only.