NEW KBI GLOBAL INVESTORS 'GLOBAL SUSTAINABLE INFRASTRUCTURE STRATEGY' OFFERS ACCESS TO AN ARRAY OF LISTED INFRASTRUCTURE INVESTMENT OPPORTUNITIES
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.
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:
Phoenix Financial PR
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Investors seeking further information on the new Strategy should contact KBI Global Investors at…….
Senior Vice President Business Development & Client Services
KBI Global Investors
+353 1 438 4400
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.
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.