PI Partnership – MFS Investment Management


3) Liquid, transparent access Your money is not subject to a lock-up period, which could potentially be years, nor are you likely to face redemption gates as you are investing in publicly traded, listed securities. This route also provides real-time pricing with instant access to capital as any redemptions involve selling shares of public companies rather than selling assets to return capital. As we have seen recently, the value of liquidity may have been under- estimated, so this route can ease any liquidity constraints faced by schemes.


4) Similar return profile


Over the past 20 years, listed has provided similar returns to the private route but with significantly lower fees. After all, underlying assets are the same whether you take the public or


the private route. Currently, listed provides attractively valued assets as they have become cheaper during this market down- turn while private assets may have overstretched valuations that have not yet been marked to market.


Infrastructure provides an attractive growth opportunity for pension schemes with multiple routes to gaining exposure. Particularly in light of the significant liquidity risks faced recently, we believe the listed approach can help meet schemes’ liquidity needs as well as inflation hedging and return require- ments. Listed can complement private allocations, and we believe it is well worth UK institutional investors exploring it further to understand the opportunities available.


For more information about MFS’ listed infrastructure capabil- ity, please contact Kelly Tran on ktran@mfs.com.


Performance of Listed vs Private Global Infrastructure (December 2002 to Date)


1.000


100 200 300 400 500 600 700 800 900


0


Dec 02


Dec 03


Dec 04


Dec 05


Dec 06


Listed (GLIO Index Monthly TR)


Dec 07


Dec 08


Dec 09


Dec 10


Private (Preqin Unlagged)


Source: GLIO, Wilde/Preqin. Monthly data as at 31 December 2002 to 30 June 2022. Labels indicate annualised return over that period. Index levels were rebased to 100 at the start of the analysis. Preqin unlagged quarterly data as at 30 June 2003 to 30 November 2021 (latest available)


Dec 11


Dec 12


Dec 13


Dec 14


Dec 15


Dec 16


Dec 17


Dec 18


Dec 19


Dec 20


Dec 21


The views expressed are those of MFS and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any MFS investment product. For institutional and investment professional use only. Issued in the UK and Switzerland by MFS International (U.K.) Limited („MIL UK“), a private limited company registered in England and Wales with the company number 03062718, and authorised and regula- ted in the conduct of investment business by the UK Financial Conduct Authority. MIL UK, an indirect subsidiary of MFS®, has its registered office at One Carter Lane, Lon- don, EC4V 5ER. 52901.1


December – January 2023 portfolio institutional roundtable: Infrastructure


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