search.noResults

search.searching

saml.title
dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
These are operational assets. That’s the major difference to other asset classes. There are moving parts and things happen in this sector.


What problems could listed infrastructure solve for investors? Florence Taj: Listed is a nascent part of infrastructure investing. Most people around this table are involved in private infrastruc- ture, but the listed side has many advantages for pension funds. The first is that there is a huge investable space. The FTSE benchmark we use has a $3trn (£2.4trn) market cap of compa- nies listed globally that are involved in the infrastructure space, which have stable regulatory frameworks, long-term cashflows and inflation adjustments. That space is rarely accessible to investors in a low risk, diversified packaged fund that is liquid. We are trading on huge markets, we do not have gating in place. In an environment where liquidity is becoming more important, having listed infrastructure complement private is a great option to play in that space without some of the draw- backs that we see on the private side. The second point is quite topical in that valuations on the listed side are often much lower than they are on the private side. For


example, when Vodafone sold its Vantage Towers business to KKR and GIP, the valuation they received was 30% above what listed companies are trading at in Europe. That speaks to a lot of money being raised on the private side that is trying to find a home and the natural home for deals that make a difference is the listed market. It makes sense for pen- sion funds to take advantage of that valuation difference.


Catherine, what are institutional investors discussing with you and your colleagues when it comes to infrastructure? Catherine Lloyd: ESG is front of mind. It is a hard rule that many European investors must have Article 8 funds as a minimum. They will not consider anything less. In the US some investors are wary of that. They are not sure whether the SFDR regime and the EU taxonomy are reducing the effectiveness of their infrastructure investing. They are wary of investing in those types of products, preferring to stay out of it. We are seeing a lot of potential investors in the infrastructure space. There are lots of typically smaller pension funds that have not yet explored investing in infrastructure or in private markets.


10 December – January 2023 portfolio institutional roundtable: Infrastructure


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36