Overview
We only invest in companies we believe provide a sufficient return for the commensurate risk. Our philosophy is centred around an investment approach which focuses on ‘core and pure’ infrastructure assets. These are companies that own and operate infrastructure assets with no or low exposure to commodity, volume and competition risks. We believe that these assets can provide investors with superior risk-reward characteristics.
Global listed infrastructure, the opportunity
Global demand for infrastructure is surging - With an estimated US$57 trillion in investment required between 2013 and 2030i and fiscally constrained governments struggling to keep pace with demand, the listed infrastructure sector has grown rapidly. This has created the opportunity for informed investors to benefit from assets with the potential to generate both income and capital gains over the long-term.
Strong cash yield with ongoing growth potential - In an environment of slow economic growth and low interest rates, infrastructure assets can be an attractive solution for investors seeking stable returns and attractive yields. Infrastructure businesses typically provide essential services in controlled, monopoly style environments, often with revenues locked in by extended contracts or regulatory frameworks. As a result, they offer predictable, inflation-linked returns with low volatility and a low correlation to traditional asset classes such as equities and fixed income.
The liquidity and diversification of a listed investment - By choosing listed infrastructure, rather than a direct investment, you can benefit from:
Liquidity and transparency. Liquidity and constantly updated pricing gives our investment team more flexibility in building and rebalancing a portfolio of quality assets.
Diversification. Exposure to a broad range of assets for the same invested capital, allowing wider diversification across sectors and regions.
Specialist expertise. Access to a dedicated listed infrastructure investment team with significant specialist experience managing portfolios of infrastructure securities. Team members have covered multiple infrastructure sectors and regions through their careers.
1 McKinsey Global Institute, January 2013
AMP Capital, listed infrastructure experts
Specialist expertise from an industry leader AMP Capital has long been recognised as an infrastructure pioneer. With over 28 years of infrastructure experience and dedicated expertise, with more than 120 separate unlisted equity and debt investments since 1988.
Our team - AMP Capital has over 70 investment professionals focused exclusively on infrastructure investments, including a team of seven specialists dedicated to managing listed infrastructure portfolios for our clients. Our size, scale and reputation in infrastructure enable us to harness deep insights that help create better investment outcomes.
Listed infrastructure expertise - Successful investment in listed infrastructure requires experience in the specifics of infrastructure securities. The experience of our listed infrastructure investment team enables us to identify attractive long-term opportunities and to take advantage of market inefficiencies and temporary dislocations.
With investment professionals based in Sydney and London, our team is close to the major markets and has an in-depth understanding of local market conditions.
Our investment process involves a fundamental bottom-up analysis of both valuation and equity. We use our Knowledge of local markets to apply this analysis, and complement it with an analysis of top-down factors.
As one of the first infrastructure investors, we have a long history of infrastructure investing across multiple jurisdictions and sectors, and throughout market cycles.
With more than 70 investment professionals focused exclusively on infrastructure investments, information sharing across the team enables us to capitalise on our depth and breadth of coverage. Our size, scale and reputation in infrastructure enable us to harness deep insights that help create better investment outcomes.
Risks specific to infrastructure investments
Risks specific to infrastructure investments include the risks of investing in share markets, infrastructure and international markets. In addition, the risks associated with interest rates, gearing and the cost of debt, derivatives, investment management, co-ownership of assets, fluctuations in rental income, rental demand and fund termination risks.
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