KBI Global Investors has launched a new infrastructure strategy for the institutional and the international funds marketplace.
The KBIGI Infrastructure Strategy offers exposure to the world’s most critical resources, better liquidity than the private market, and enables investors to deploy their capital with immediate effect, the company said in a statement announcing the launch.
Interest in an allocation to infrastructure has grown significantly in recent years, but many continue to steer clear of the asset class on the grounds of liquidity, or, as KBIGI points, rather a lack of it.
The Global Sustainable Infrastructure Strategy will offer access to a global portfolio of sustainable publicly traded infrastructure companies, where Dublin-based KBIGI, a pioneer in natural resources investing, has an experienced team of nine dedicated investment professionals.
The KBIGI team 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.
Colm O’Connor, pictured left, senior portfolio manager at KBI Global Investors 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.
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.
To coincide with the launch of the new Strategy, KBIGI has commissioned a new video. This can be accessed at: https://vimeo.com/240138862