Fund Strategy 'Why so little thirst for Water?'

By KleinWB, Tuesday, 18th August 2015 | 0 comments

Water is as big an infrastructure industry as telecoms and power but few investors have exposure to it. When most investors think about big infrastructure projects, they tend to think about transport, such as airports, ports, railways and motorways, telecom projects such as fibre optic networks, or big power projects such as large electricity power stations.

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Recent news

Institutional asset manager KBI Global Investors (‘KBIGI’) is pleased to confirm that the United Nations supported Principles for Responsible Investment (‘PRI’) has for the third consecutive year awarded an A+ rating – its highest rating – across all three assessed modules relevant to the firm’s overall approach to Responsible Investment and the management of equities.

The Dublin-based manager achieved:

  • an A+ rating for the ‘Listed Equity – Incorporation’ module, which examines how the firm incorporates ESG criteria into its investment processes.  (This compares to the median competitor rating of ‘B’, two grades below the rating awarded to KBIGI);
  • an A+ rating for ‘Strategy & Governance’ of Responsible Investing within the firm, (which compares with a median competitor score of ‘A’, one grade below KBIGI’s A+ rating);
  • an A+ rating for ‘Listed Equity – Active Ownership’, which examines how the firm employs Responsible Investing principles in its proxy voting and engagement activity.  (This compares to the median competitor rating of ‘B’).

KBI Global Investors boasts a long-standing commitment to Responsible Investing, dating back to the early 1980s, and has been a signatory of the UN PRI – the World’s leading proponent of responsible investment – for many years.  Today the PRI has over 2,300 signatories (Asset Owners and Asset Managers), with combined assets owned and under management of more than $80trn.

The PRI commitment

Each year, every signatory to the Principles must tender a submission to the PRI, incorporating a detailed account of the firm’s Responsible Investing activities.  This is a public document, available from the PRI.  In turn, the PRI conducts a detailed Assessment of all submissions, and awards a rating (‘A+’, ‘A’, ‘B’, ‘C’, ‘D’, ‘E’ or ‘F’, in descending order of merit) against various aspects of Responsible Investing activity.

Commenting on the award, Eoin Fahy, Head of Responsible Investing at KBI Global Investors said: “As the importance of ESG and Responsible Investing becomes ever clearer in the marketplace, many investment managers are moving to strengthen their commitment in this area.  As a result, many investors are finding it difficult to identify which managers have a real and longstanding commitment to Responsible Investing, and which are simply following the herd.  The trio of A+ ratings we have secured underlines the strength of our proposition and credentials in this key area and sends a very clear message to the market and to our clients – that our commitment is real, deeply entrenched in the firm’s investing culture and part of our very DNA.”

KBIGI has always had a strong focus on ESG and is a member of or signatory to the Carbon Disclosure Project, Institutional Investors Group on Climate Change and the UK Stewardship Code (with Tier 1 status), and part of a network of investors which support and promote the long-term benefits of sustainable investment within the context of their individual investment processes and fiduciaries duties.  The firm’s Water, Energy Solutions and Agribusiness fund have each been approved as compliant with the European SRI Transparency Code (http://www.eurosif.org/transparency-code). More information on KBIGI’s work in the field of Responsible Investing is available at https://issuu.com/kbigi/docs/kgbi-corporate_brochure_digital_sin?e=33724851/62600686 and in this short video https://vimeo.com/261110766.

NOTES TO EDITORS

About UN PRI Assessment and the KBIGI Rating

Principles for Responsible Investing 2019 Assessment:

Signatories of the PRI are assessed against a range of Responsible Investing indicators within each module.  KBI Global Investors was awarded an ‘A+’ rating for all modules relevant to equity investors i.e. ‘Strategy and Governance’, ‘Listed Equity – Incorporation’, and ‘Listed Equity – Active Ownership’.  Details are available on request.

KBI Global Investors’ submission to the UNPRI, which gives complete transparency on all the firm’s Responsible Investing activity and policies, is available at this link:

https://www.unpri.org/signatories/kbi-global-investors/1377.article

The methodology of assessment is detailed at this link: https://www.unpri.org/download?ac=4315

The full PRI Assessment for KBI Global Investors is available on request.

The PRI is the World's leading proponent of responsible investment, an international network of investors working together to put the six Principles for Responsible Investment into practice – https://www.unpri.org/pri/what-are-the-principles-for-responsible-investment – works to understand the investment implications of environmental, social and governance (‘ESG’) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.  It acts in the long-term interests of its signatories, the financial markets and economies in which they operate – and ultimately the environment and society at large.  The PRI is truly independent and encourages investors to use Responsible Investment to enhance returns and better manage risks.  More information on the PRI is available at https://www.unpri.org/

About KBI Global Investors (‘KBIGI’)

Established in 1980, KBI Global Investors (‘KBIGI’) is a specialist institutional asset management boutique, offering a range of Global Equities and Natural Resources strategies.  The firm manages assets for a broad range of clients – public and corporate pension schemes, sub-advisory investors, foundations and endowments, wealth managers, private banks and investment intermediaries included.  KBIGI enjoys an increasingly global client base and today holds mandates in the UK, Europe, North America and Asia.  Part of the Amundi Group, the firm is headquartered in Dublin, with additional offices in Boston, Massachusetts. 

Originally focused exclusively on the Irish market, managing predominantly domestic balanced mandates, KBIGI continues to manage pension fund assets for some of Ireland’s largest and best-known corporations; today the firm enjoys significant coverage across the global institutional consultant community, offering investment services on both a segregated and unitised basis.

KBIGI boasts a track record of delivering consistent and outstanding risk-adjusted investment performance over the longer term, its highly experienced investment team today managing over €10.9bn.  (This is the combined AuM of KBI Global Investors Ltd and KBI Global Investors (North America) Ltd as at 31st March 2019).

The firm is headed by CEO Sean Hawkshaw, with members of the KBIGI team holding 12.5% of the equity in the firm. 

Disclaimers

KBI Global Investors Ltd is regulated by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority in the UK.  Details about the extent of our regulation by the FCA are available from us on request.  KBI Global Investors (North America) Ltd is a registered investment adviser with the SEC and regulated by the Central Bank of Ireland.  KBI Global Investors (North America) Ltd is a wholly owned subsidiary of KBI Global Investors Ltd.  ‘KBI Global Investors’ or ‘KBIGI’ refer to KBI Global Investors Ltd and KBI Global Investors (North America) Ltd.

KBI Global Investors (‘KBIGI’), which has always had a strong focus on Responsible Investing and ESG, has published the findings of a unique analysis of the relative performance of cohorts of securities segmented by MSCI ESG rating¹ and geographical region.  The Dublin-based firm:

  • identified significant differences between ESG scores in Developed Markets and Emerging Markets and significant changes in the ESG scores in indices over the last five years;
  • found, positively, that ESG has a very low correlation with the characteristics that it targets across its suite of Global Equities Strategies;
  • concluded that stocks with above average ESG scores have outperformed.

 

  • Index breakdown by ESG

The ESG distribution profiles between Developed and Emerging Markets are close to being mirror opposites; in the Developed region there is a higher number of stocks in the above average ESG category, whilst in Emerging Markets the biggest concentration is in the lower categories, the single B grade in particular.  Whilst there is a significant difference in the number of stocks between the Developed and Emerging index (1634 vs 1120 stocks) this is not enough to explain the striking gap in the AAA bucket between the two indexes (130 vs 7).  On the flip side there are only 40 CCC stocks in Developed Markets versus 133 in the Emerging Markets.* This disparity does not surprise KBIGI as responsible business practices are more evident in the Developed world and less so in the Emerging world.

The firm also identified significant differences at a regional level.  Of the Developed Markets, Europe has a higher concentration of stocks with a high ESG score than North America, where the distribution is more skewed to the lower ratings.  In Europe 71.4 % of companies achieved above average ESG scores (AAA, AA, or A), the corresponding figure for North America at just 35%.*  Within the Emerging Markets, in Asia the poorer the rating the higher the number of stocks (the only exception being the CCC bucket), whilst in Latin America the opposite holds true.

  • Changes identified in index breakdown by ESG rating over the last five years

As part of their endeavours to analyse the evolution of the ESG buckets KBIGI compared the change in the number of stocks in each bucket between 31st January  2014  and 31st December  2018.  KBIGI find that this movement of companies, and how they are rated from an ESG perspective, is often misunderstood by clients; ratings are not static and can change over time in tandem with a company's ESG practices. The evolution of stocks from bucket to bucket can be the result of:

  • the movement of a company from one bucket to another (ESG migration);
  • corporate actions (e.g. M&A);
  • new companies joining or leaving the index.

Over the period analysed KBIGI observe a downward trend in the number of companies with a CCC rating and this is consistent both at a regional level for the Developed Markets (Europe -5, Japan -2, North America -28 and Pacific ex Japan -3) and the Emerging Markets (Asia² 0, EMEA -14, LatAm -4).

*Source: Factset and MSCI ESG Research Inc. December 31st 2018

In Developed Markets we have seen a general improvement in ESG ratings, with more companies joining the upper end of the grading system. This is particularly true for Europe with the AAA, AA and A buckets reporting an increase in head count, in contrast to a decrease in other buckets.

 

 

 

 

 

 

 

 

In Emerging Markets the Asia region saw an increase in the overall number of stocks as a result of the inclusion of Chinese A shares ; this had a significant impact on rating distributions, in particular in the two lowest ratings buckets.On 29th December 2017 there were 51 stocks in those two categories versus 120 at the end of 31st December 2018.

 

 

 

 

 

 

 

 

  • World Index performance by ESG evolution over the last five years

The US Dollar performance of each (weighted) ESG bucket in the Developed Markets over the five-year period to end of 2018 is shown in the table below along with the size of each bucket.  What we can see quite clearly is that, in almost all cases, the above average ESG categories outperform, while the lowest bucket (CCC) is the worst performer.

 

 

 

 

 

 

Drawing some conclusions from its analysis, James Collery, Senior Portfolio Manager, Global Equities Strategies at KBI Global Investors said, “Our research measures the way in which ESG impacts the performance of stocks in different regions around world.We are not aware of any other firm doing this.What we are trying to do is to put hard numbers on everything we do when it comes to ESG, to be specific, to make it tangible and to be transparent.This is in stark contrast to the industry at large.It makes a lot of noise about ESG but offers nothing meaningful as to how it effects what they do or how their investments behave.

It is of course important to take a real world view on these results.Firstly, allocating stocks into categories on the basis of just one of the metrics it displays, whatever that metric may be, has its limitations. For this reason, the size of each bucket is important – not only because it shows us where the majority of stocks with above or below average ESG scores lie, but because the weighted average results are more meaningful for the larger segments. It should be understood that buckets that are very small (below say 1.5-2%) are largely meaningless as the number of stocks in those segments is too small. This means that performance is more likely to be driven by stock specific drivers (idiosyncratic risk) rather than the ESG characteristics on display.

Long-term commitment to Responsible Investing

KBIGI has always had a strong focus on ESG and Responsible Investing.  A member of or signatory to the Carbon Disclosure Project, Institutional Investors Group on Climate Change and the UK Stewardship Code (with Tier 1 status), the firm is part of a network of investors which support and promote the long-term benefits of sustainable investment within the context of their individual investment processes and fiduciaries duties.

More information on KBIGI’s work in this field available at https://issuu.com/kbigi/docs/kgbi-corporate_brochure_digital_sin?e=33724851/62600686 and in this short video https://vimeo.com/261110766.

 

– ENDS –

¹ MSCI Research rates companies on an AAA to CCC scale (good to bad) on an industry by industry basis and according to the rated company’s exposure to ESG risks and the ability of each company to manage those risks relative to their peers

² Before the inclusion of the Chinese A share in the index there was a reduction of CCC companies.  After the index reshuffle the number of CCC companies returned to the same level as it was in January 2014.

NB: All data used in the KBIGI analysis at 31 December 2018.

Journalists seeking further information or who wish to speak with KBI Global Investors should contact:

Gordon Puckey

Managing Director

Phoenix Financial PR

07799 767 468

 

NOTES TO EDITORS

About MSCI ESG Research Products and Services

MSCI ESG Research products and services are provided by MSCI ESG Research LLC, and are designed to provide in-depth research, ratings and analysis of environmental, social and governance-related business practices to companies worldwide.  ESG ratings, data and analysis from MSCI ESG Research LLC. are also used in the construction of the MSCI ESG Indexes.  MSCI ESG Research LLC is a Registered Investment Adviser under the Investment Advisers Act of 1940 and a subsidiary of MSCI Inc.

About KBI Global Investors (‘KBIGI’)

Established in 1980, KBI Global Investors (‘KBIGI’) is a specialist institutional asset management boutique, offering a range of Global Equities and Natural Resources strategies.  The firm manages assets for a broad range of clients – public and corporate pension schemes, sub-advisory investors, foundations and endowments, wealth managers, private banks and investment intermediaries included.  KBIGI enjoys an increasingly global client base and today holds mandates in the UK, Europe, North America and Asia.  Part of the Amundi Group, the firm is headquartered in Dublin, with additional offices in Boston, Massachusetts.

Originally focused exclusively on the Irish market, managing predominantly domestic balanced mandates, KBIGI continues to manage pension fund assets for some of Ireland’s largest and best-known corporations; today the firm enjoys significant coverage across the global institutional consultant community, offering investment services on both a segregated and unitised basis.

KBIGI boasts a track record of delivering consistent and outstanding risk-adjusted investment performance over the longer term, its highly experienced investment team today managing over €10.9bn.  (This is the combined AuM of KBI Global Investors Ltd and KBI Global Investors (North America) Ltd as at 31st March 2019).

The firm is headed by CEO Sean Hawkshaw, with members of the KBIGI team holding 12.5% of the equity in the firm.

www.kbiglobalinvestors.com

 

Disclaimers

KBI Global Investors Ltd is regulated by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority in the UK.  Details about the extent of our regulation by the FCA are available from us on request.  KBI Global Investors (North America) Ltd is a registered investment adviser with the SEC and regulated by the Central Bank of Ireland.  KBI Global Investors (North America) Ltd is a wholly owned subsidiary of KBI Global Investors Ltd.  ‘KBI Global Investors’ or ‘KBIGI’ refer to KBI Global Investors Ltd and KBI Global Investors (North America) Ltd.

Under MiFID II this is deemed marketing material and should not be regarded as investment research. This material is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any security, product or service including any group trust or fund managed by KBI Global Investors.  The information contained herein does not set forth all the risks associated with this strategy, and is qualified in its entirety by, and subject to, the information contained in other applicable disclosure documents relating to such a strategy.  KBI Global Investors’ investment products, like all investments, involve the risk of loss and may not be suitable for all investors, especially those who are unable to sustain a loss of their investment.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

This introductory material may not be reproduced or distributed, in whole or in part, without the express prior written consent of KBI Global Investors.  The information contained in this introductory material has not been filed with, reviewed by or approved by any regulatory authority or self-regulatory authority and recipients are advised to consult with their own independent advisors, including tax advisors, regarding the products and services described therein.  The views expressed are those of KBI Global Investors and should not be construed as investment advice.  We do not represent that this information is accurate or complete and it should not be relied upon as such.  Opinions expressed herein are subject to change without notice.  In some tables and charts, due to rounding, the sum of the individual components may not appear to be equal to the stated total(s).  Additional information will be provided upon request.

All MSCI data is provided “as is”. In no event shall MSCI, its affiliates, or any MSCI data provider have any liability of any kind in connection with the MSCI data.

No further distribution or dissemination of the MSCI data is permitted without MSCI’s prior express written consent.”

 

 

 

 

 

Noel O'Halloran interview on Bloomberg radio, 12th October 2018

Noel speaks to Daybreak Europe’s Matt Miller and Markus Karlsson about how he sees this week's equity sell off as a healthy correction.

Please click on link below to listen to the interview:

Bloomberg radio interview - 12th October

KBI GLOBAL INVESTORS SUCCESSFULLY MAPS REVENUE IMPACT OF CONSTITUENT PORTFOLIO HOLDINGS TO UN SUSTAINABLE DEVELOPMENT GOALS

“Mapping to revenue is the future”

Introduced in September 2015, the UN Sustainable Development Goals (‘SDGs’) set 17 goals and sub targets (most with a 2030 deadline) for the eradication of poverty and hunger, the protection of the environment, the provision of clean water and sanitation, and prosperity for all.  KBI Global Investors’ (‘KBIGI’) aligned its investment strategies with the SDGs from their inception, but the specialist institutional asset management boutique has now gone a stage further; the Dublin-based firm has quantified the revenue impact of constituent holdings in each of its Natural Resource strategies to these goals.  The breakthrough follows a body of work undertaken over the course of the last six months, and is timely, with growing numbers of investors looking to achieve impact through public equities.

Investing in ‘Solutions Providers’ to deliver Impact

‘Impact investing’ refers to investments made with the intention of generating a measurable, beneficial, social or environmental impact alongside a financial return.  KBIGI’s Natural Resource strategies invest in ‘solutions providers’ – companies whose products and services seek to address the global shortages of clean and safe food, water and energy – and it is therefore clear that the firm’s Natural Resource strategies are ‘Impact’ investing strategies.

However, these beneficial impacts are very often hard to measure.  It is, for example, clear that a company that is improving food safety is generating a beneficial social impact – preventing death and illness – but how material is that impact relative to the size of an investment in that firm, and/or to the size of the total investment portfolio?  This is an issue that has been troubling investors for some time.

The impact on communities, the environment and industries resulting from the work being undertaken is high, but the range of solutions being delivered – even within a single company – means measuring impact at the portfolio level has been difficult.  Companies’ own impact reporting has often been lacking, and where it has existed, it has been nigh impossible to compare with that of other firms.  What is more, the data available is often oriented towards output rather than outcome or impact.  KBIGI has therefore had to rely on anecdotal evidence of impact, highlighting particular achievements.  By way of example, we have been able to say that:

  • Ecolab’s hand hygiene solutions help to wash 31 billion hands each year1
  • Pure Technologies’ leak detection helped save 440 billion litres by identifying 5,000+ leaks over the last decade2
  • Jain Irrigation’s drip irrigation and sprinklers have saved 49 trillion litres of water3
  • China Everbright International reduced chemical oxygen demand (a measure of contamination) in wastewater by more than 2 million tonnes from 2005 20164

Breakthrough

Now KBI Global Investors has become one of but a small band of managers to measure the Impact of its Natural Resource portfolios.  The firm has done this by calculating the percentage of each investment portfolio’s revenue that is aligned with the SDGs.  KBIGI has taken the total amount of revenue earned by the companies in their portfolios, and then allocated that revenue to various business activities. 

Then for each business activity, the firm decides whether that activity has a positive, neutral or negative impact in achieving the United Nations’ SDGs.  On a weighted basis, KBIGI calculate the percentage of any portfolio’s revenue (sales) which is positively or negatively contributing to the achievement of those goals.  Taking the firm’s Water Strategy as an example, one of its most popular strategies, the work has shown that:

  • 68% of the portfolio’s business activities (measured by revenues) contribute directly to the achievement of the SDGs
  • 7 of the 17 SDGs are directly benefiting from the portfolio’s investments
  • Goals 2 (Zero Hunger), 6 (Clean Water and Sanitation), 7 (Clean Energy), 9 (Industry, Innovation and Infrastructure) and 11 (Sustainable Cities and Communities) are the most directly relevant SDGs

      

Measuring the revenue impact of portfolios has been difficult

The KBI Global Investors Water Strategy invests in companies which provide solutions to global water problems – namely increasing supply and access, reducing demand and waste, improving and assuring quality, and building and repairing infrastructure.  The firm has always been committed to Responsible Investing, beginning with the use of basic exclusionary criteria in the 1990s and moving to full ESG integration today, as Head of Business Development & Client Services, Geoff Blake explains:

“We have come a long way from those early days, running exclusionary screens on our portfolios.  Today we fully integrate ESG scores into our investment process and enjoy active engagement with companies – and we have now moved to direct measurement and reporting on the impact of our holdings at a company level by revenue.  The thought leadership on avenues of impact brought about by the significant body of work and groundswell of support for SDGs helps advance the quantification of impact from the previous situation of interesting, yet disjointed company-level anecdotes to one which can be more broadly applied at the portfolio level.  It is clear investing in water creates significant impact, and equity owners in businesses providing solutions to global water problems play a key role.”

Eoin Fahy, Head of Responsible Investing adds:
“We are still diving into the numbers and evolving our methodology, but our work may well provide a methodology for companies to report their own impact as well.  We have already seen a couple of consulting engineers providing anecdotes for each of the 17 SDGs and a self-assessment of their alignment across the SDGs.  We like the transparency the new approach brings and will most certainly be reporting to clients in this way going forward – and our work may well prompt the ‘green washers’, those trading on a generic alignment of their strategies with the SDGs, to revisit their approach.  Mapping to revenue is the future.”

To learn more, a short video can be accessed at: https://vimeo.com/261111712

ENDS

Journalists seeking further information should contact:
Gordon Puckey
Phoenix Financial PR
+44 7799 767 468
gordon@phoenixfinancialpr.co.uk

References: 1. Ecolab, 2. Pure Technologies, 3. Jain Irrigation, 4. China Everbright.

UN Sustainable Development Goals (SDGs)

KBI Global Investors supports the SDGs.  The use of the image is for illustrative purposes only and is not intended to promote KBIGI products or services.

ALL MARKETS:

KBI Global Investors Ltd is regulated by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority in the UK.  Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.  KBI Global Investors (North America) Ltd is a registered investment adviser with the SEC and regulated by the Central Bank of Ireland.  KBI Global Investors (North America) Ltd is a wholly-owned subsidiary of KBI Global Investors Ltd.  ‘KBI Global Investors’ or ‘KBIGI’ refer to KBI Global Investors Ltd and KBI Global Investors (North America) Ltd.

IMPORTANT RISK DISCLOSURE STATEMENT

Under MiFID II this is deemed marketing material and should not be regarded as investment research. This material is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any security, product or service including any group trust or fund managed by KBI Global Investors.  The information contained herein does not set forth all the risks associated with this strategy, and is qualified in its entirety by, and subject to, the information contained in other applicable disclosure documents relating to such a strategy.  KBI Global Investors’ investment products, like all investments, involve the risk of loss and may not be suitable for all investors, especially those who are unable to sustain a loss of their investment.  Stocks mentioned in this document are a representative sample of stocks that may or may not be in the strategy.  The securities listed are selected based on objective, consistently applied, non-performance-based criteria.  Size or profitability of stocks mentioned have not been used in determining the selection of stocks and their inclusion should not be construed as a stock recommendation.  A complete list of all securities recommended for the immediately preceding year is available upon request.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

This introductory material may not be reproduced or distributed, in whole or in part, without the express prior written consent of KBI Global Investors.  The information contained in this introductory material has not been filed with, reviewed by or approved by any regulatory authority or self-regulatory authority and recipients are advised to consult with their own independent advisors, including tax advisors, regarding the products and services described therein.  The views expressed are those of KBI Global Investors and should not be construed as investment advice.  We do not represent that this information is accurate or complete and it should not be relied upon as such.  Opinions expressed herein are subject to change without notice.  The products mentioned in this Document may not be eligible for sale in some states or countries, nor suitable for all types of investors.  Past performance may not be a reliable guide to future performance and the value of investments may fall as well as rise.

Investments denominated in foreign currencies are subject to changes in exchange rates that may have an adverse effect on the value, price or income of the product.  Income generated from an investment may fluctuate in accordance with market conditions and taxation arrangements.  In some tables and charts, due to rounding, the sum of the individual components may not appear to be equal to the stated total(s).  Additional information will be provided upon request.  Performance for periods of more than one year is annualized.  Gross results shown do not show the deduction of investment management fees.  A client’s actual return will be reduced by the management fees and any other expenses which may be incurred in the management of an investment account.  For example, a €1,000,000 investment with an assumed annual return of 5% with a management fee of 0.85% would accumulate €8,925 in fees during the first year, €48,444 in fees over five years and €107,690 in fees over ten years.  Performance returns for individual investors may differ due to the timing of investments, subsequent subscriptions/redemptions, share classes, fees and expenses.  Stocks mentioned in this document may or may not be held in this strategy at this time.  Any projections, market outlooks or estimates in this document are forward-looking statements and are based upon certain assumptions.  Other events which were not taken into account may occur and may significantly affect the returns or performance of the strategy.  Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur.  Discussions of market conditions, market high/lows, objectives, strategies, styles, positions, and similar information set forth herein is specifically subject to change if market conditions change, or if KBIGI believes, in its discretion, that investors returns can better be achieved by such changes and/or modification.  Style descriptions, market movements over time and similar items are meant to be illustrative and may not represent all market information over the period discussed.  Form ADV Part 1 and Part 2 are available on request.

Water Representative Strategy Performance Disclaimer: Returns up to 30/04/08 are based on a Belgian Fund which followed the Water Strategy and was managed by KBI Global Investors.  Returns from 01/05/08 are actual returns from the KBI Global Investors Water Strategy.

GRS Representative Strategy Performance Disclaimer Returns since inception to 28/02/2015 are based on a simulated portfolio using the combined return of three representative strategies of KBI Global Investors, i.e. Water, Agribusiness and Energy Solutions, each weighted at 1/3 of the portfolio, rebalanced quarterly.  Returns from 01/03/2015 are actual returns from the GRS Strategy.  Simulated performance is hypothetical and is provided for informational purposes only to indicate historical performance had the strategy been available over the relevant time period.  It is not a reliable guide to future performance.  Water returns since inception are based on the KBI Global Investors Water Strategy.  Agribusiness returns since inception are based on the KBI Global Investors Agri Strategy.  Energy Solutions returns since inception are based on the KBI Global Investors Energy Solutions Strategy.

KBI Global Investors (North America) Ltd is exempt from the requirement to hold an Australian Financial Services license in respect of the financial services it provides to wholesale investors in Australia and is regulated by both the Central Bank of Ireland and the Securities and Exchange Commission of the US under US laws which differ from Australian laws.  Any services provided in Australia by KBI Global Investors Ltd or other affiliates will be provided by the relevant entity as representative of KBI Global Investors (North America) Ltd.  This material and any offer of investments is intended for and can only be provided and made to persons who are regarded as wholesale clients for the purposes of the Corporations Act of Australia and must not be made available or passed on to persons who are regarded as retail investors.  It may not be reproduced or distributed, in whole or in part, without the express prior written consent of KBI Global Investors (North America) Ltd.  The information contained in this introductory material has not been filed with, reviewed by or approved by any Australian or United States regulatory authority or self-regulatory authority and recipients are advised to consult with their own independent advisors, including tax advisors, regarding the products and services described therein.

Hawkshaw and O’Halloran join US colleagues at NYSE The Opening Bell® ceremony following interview with Maria Bartiromo

 

With the St Patrick’s Week celebrations well under way, it was appropriate that Dublin-based institutional asset manager KBI Global Investors (‘KBIGI’) should join Margaret Duffy, Chair of the Board of Directors of The New Ireland Fund, Inc (NYSE: IRL) today as she rung The Opening Bell®.


 

The New Ireland Fund, Inc (the ‘Fund’) invests almost exclusively in Irish companies and is the only actively managed NYSE listed fund of its type.  The Fund, which seeks to deliver long-term capital appreciation, is designed for U.S. investors looking to participate in the Irish equity market, and is advised by KBI Global Investors (North America) Ltd, a subsidiary of KBI Global Investors Ltd.

The Opening Bell® ceremony is a fitting backdrop to the Fund’s recent and successful capital raise, furthermore the sustained economic recovery of Ireland, which has since 2011 been amongst the strongest growing economies in Europe – its economic performance outpacing the broader Eurozone.

Sean Hawkshaw, CEO at KBIGI, Director and President of the Fund, and Noel O’Halloran, CIO of KBIGI, joined Duffy for The Opening Bell® ceremony following a high-profile appearance on ‘Mornings with Maria’, Fox Business’ flagship business show, hosted by the now legendary anchor Maria Bartiromo.

KBI Global Investors Ltd. is regulated by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority (‘FCA’) in the UK.  Details about the extent of the Company’s regulation by the FCA are available from KBI Global Investors Ltd. on request.  KBIGI is registered as an Investment Adviser with the Securities and Exchange Commission and regulated by the Central Bank of Ireland.

 

 

 


End of Cycle Excesses Punished
Bloomberg, Daybreak Europe, February 13, 2018

(Bloomberg) -- Last week’s market rout was a wake up call, says Noel O’Halloran, CIO at KBI Global Investors. He told Daybreak Europe’s Markus Karlsson that we are closer to the end of the economic cycle, as fixed income and equities hit all time highs. He added that the success story of the next economic phase will be found in more defensive stocks with stronger fundamentals, sectors in the market like highly valued tech stocks (and strong momentum sectors) that have led the market, is where the vulnerability lies.

To listen to the interview please click here

 

 

 

 
Noel O’Halloran interview on Bloomberg radio, 10th January 2018

Noel speaks to Daybreak Europe’s Nejra Cehic and Markus Karlsson about the vulnerability of the Bond market, volatility and the prospects for continued dividend growth.

Please click on file below to listen to the interview:

Bloomberg radio interview

A SUSTAINABLE, DIFFERENTIATED AND FORWARD-LOOKING SOLUTION FOR INFRASTRUCTURE INVESTORS

New KBIGI Infrastructure strategy offers exposure to the World’s most critical resources, better liquidity than the private market, and importantly enables investors to deploy their capital with immediate effect

Interest in an allocation to infrastructure has grown significantly in recent years, as investors place a greater emphasis on real assets and look to achieve broader diversification.  Sadly, many continue to steer clear of the asset class on the grounds of liquidity, or rather a lack of it – but that is to miss an opportunity.  The listed market offers an increasingly popular means of accessing infrastructure assets, and combines the most attractive attributes of private infrastructure with the benefits of liquidity and daily pricing.  Demand for infrastructure exposure continues to increase, the attractive risk-adjusted-return profile receiving greater attention – and with the World requiring trillions of dollars of investment in sustainable infrastructure over the coming years*, KBI Global Investors today confirmed the launch of its Global Sustainable Infrastructure Strategy.

Significant population growth, rapidly expanding cities, growing societal and economic demand, and the number of ageing and depleted assets in need of rehabilitation or replacement means the demand for clean, safe and high-quality water, energy and food will continue to grow.  The new Global Sustainable Infrastructure Strategy will therefore offer access to a global portfolio of sustainable publicly traded infrastructure companies, delivering solutions in these critical areas – where Dublin-based KBIGI, a pioneer in Natural Resources investing, boasts a core competence.  Its experienced and professional team of nine dedicated investment professionals has been investing in infrastructure since the inception of its Natural Resources strategies in December 2000, and has been managing specialised infrastructure investments in water and clean energy since 2001, and in food since 2008.

Investment summary

The Strategy seeks to deliver strong investment returns within a robust framework, lower volatility and a dividend yield of between 3.5% and 4.5%.  It will deliver material and diverse exposure to water and clean energy infrastructure, food storage and transportation, and to farmland – investing in the owners and operators of infrastructure assets, as well as the beneficiaries of infrastructure investment – as part of a portfolio of publicly listed high conviction stock holdings.  It will:

  • focus on high quality and sustainable infrastructure;
  • be diversified across multiple regions, sectors and end markets;
  • operate a disciplined and long-established investment process;
  • be benchmark agnostic in its approach;
  • be managed with a strong ESG emphasis.

The objective is to deliver a portfolio of securities with the desired risk and projected return parameters – constructed utilising the stock-specific research and stock models from the broader investment team, but focusing heavily on long-term contractual businesses and infrastructure specific investment characteristics, namely: high regulatory support; predictable and stable cashflow; low volatility of earnings; quality of assets and management.

Listed or Private Market?

An allocation to listed infrastructure can provide an important and complementary allocation within investors’ infrastructure portfolios, with many of the same characteristics being sought out in private markets i.e. asset intensive businesses with stable cashflow generation; long duration contracts, often with strong regulatory and/or government backing; attractive dividend yields and attractive risk-adjusted returns; protection against inflation.  However, listed infrastructure provides numerous benefits relative to the private market approach – greater diversity, improved liquidity, lower costs, and most importantly, immediate availability for investment.

Colm O’Connor, Senior Portfolio Manager at KBI Global Investors, who has been appointed Lead Manager on the new Strategy, cites the construction of the infrastructure necessary in the provision of our most critical resources i.e. clean, safe and high-quality water, energy and food to the global population as “our most critical need, and essential for sustainable future social and economic development.  Yet”, says O’Connor, “many institutional investors remain woefully underexposed to infrastructure, and particularly to companies in these critical areas.  For many the realisation is only now starting to dawn that a very high level of investment will be required, particularly over the next decade, if we are to ensure the provision of these most critical resources to the global population.”

The Global Sustainable Infrastructure Strategy – which will offer a lower correlation to the broader equities market, a high and sustainable dividend yield, and predictable cashflow generation – forms part of the KBIGI Natural Resources suite, which includes strategies investing in Water, Energy Solutions and Agribusiness.

To coincide with the launch of the new Strategy, KBIGI has commissioned a new video. This can be accessed at: https://vimeo.com/240138862

* Sources: World Economic Forum (2013-2030); McKinsey Global Institute (2016-2030); United Nations Conference on Climate Change December 2015.

Journalists seeking further information should contact:

Gordon Puckey
Phoenix Financial PR
+44 7799 767 468
gordon@phoenixfinancialpr.co.uk

Investors seeking further information on the new Strategy should contact KBI Global Investors at…….

Peter Fox
Senior Vice President Business Development & Client Services
KBI Global Investors
+353 1 438 4400
peter.fox@kbigi.com

NOTES TO EDITORS

About KBI Global Investors (‘KBIGI’)

Established in 1980, KBI Global Investors is a specialist institutional asset management boutique, offering a range of Global Equities and Natural Resources strategies.  The firm manages assets for a broad range of clients – public and corporate pension schemes, sub-advisory investors, foundations and endowments, wealth managers, private banks and investment intermediaries included.  KBIGI enjoys an increasingly global client base and today holds mandates in the UK, Europe, North America and Asia.  Part of the Amundi Group, the firm is headquartered in Dublin, with additional offices in Boston, Massachusetts.

Originally focused exclusively on the Irish market, managing predominantly domestic balanced mandates, KBIGI continues to manage pension fund assets for some of Ireland’s largest and best-known corporations; today the firm enjoys significant coverage across the global institutional consultant community, offering investment services on both a segregated and unitised basis.

KBIGI boasts a track record of delivering consistent and outstanding risk-adjusted investment performance over the longer term, its highly experienced investment team today managing over €9.7bn*.

The firm is headed by Sean Hawkshaw and has a headcount of 63 people, with members of the KBIGI team holding 12.5% of the equity in the firm.

* This is the combined AUM of KBI Global Investors Ltd and KBI Global Investors (North America) Ltd as at 30th September 2017.

Disclaimers

KBI Global Investors Ltd. is regulated by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority in the UK. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. KBI Global Investors (North America) Ltd. is a registered investment adviser with the SEC and regulated by the Central Bank of Ireland. KBI Global Investors (North America) Ltd. is a wholly-owned subsidiary of KBI Global Investors Ltd. ‘KBI Global Investors’ refers to KBI Global Investors Ltd and KBI Global Investors (North America) Ltd.

IMPORTANT RISK DISCLOSURE STATEMENT

This material is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any security, product or service including any group trust or fund managed by KBI Global Investors. The information contained herein does not set forth all of the risks associated with this strategy*, and is qualified in its entirety by, and subject to, the information contained in other applicable disclosure documents relating to such a strategy*. KBI Global Investors’ investment products, like all investments, involve the risk of loss and may not be suitable for all investors, especially those who are unable to sustain a loss of their investment. This introductory material may not be reproduced or distributed, in whole or in part, without the express prior written consent of KBI Global Investors. The information contained in this introductory material has not been filed with, reviewed by or approved by any regulatory authority or self-regulatory authority and recipients are advised to consult with their own independent advisors, including tax advisors, regarding the products and services described therein. The views expressed are those of KBI Global Investors and should not be construed as investment advice. We do not represent that this information is accurate or complete and it should not be relied upon as such. Opinions expressed herein are subject to change without notice.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

Any projections, market outlooks or estimates in this document are forward-looking statements and are based upon certain assumptions. Other events which were not taken into account may occur and may significantly affect the returns or performance of the strategy. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. Discussions of market conditions, market high/lows, objectives, strategies, styles, positions, and similar information set forth herein is specifically subject to change if market conditions change, or if KBIGI believes, in its discretion, that investors returns can better be achieved by such changes and/or modification. Style descriptions, market movements over time and similar items are meant to be illustrative, and may not represent all market information over the period discussed. Form ADV Part 1 and Part 2 are available on request.

Portfolio Adviser: News Round- Up September 2017
Sector Report - Infrastructure

Matt Sheldon, Senior Portfolio Manager, KBI Global Investors discusses water infrastructure investment.  

Click here to read article

 

 



Tuesday, 19th September 2017


Pound Could Fall Victim to Politics

Markets want to see a coordinated vision on Brexit within the U.K. cabinet, says Noel O’Halloran, CIO at KBI Global Investors. He told Daybreak Europe’s Nejra Cehic and Markus Karlsson the lack of unity looks set to weigh on sterling. He also explained why he believes equities will climb and Treasuries fall.

Please click here to listen to the interview


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