First Sentier Investors launches infrastructure fund
First Sentier Investors has announced the launch of the Responsible Listed Infrastructure fund to Australian institutional and wholesale investors.
The new fund would invest in global listed infrastructure assets, with a focus on companies that were contributing to or benefiting from sustainable development within a framework of good corporate governance.
The strategy would be open to Australian-based clients seeking inflation-protected income and sustainable growth from utilities, toll roads, airports, mobile towers and data centres, the firm said.
Additionally, alignment with the UN Sustainable Development Goals would be a key pillar of the stock selection process, given that infrastructure assets had a central role to play in the delivery of Affordable and Clean Energy; Clean Water and Sanitation; Sustainable Cities and Communities; and Climate Action.
“We see sustainability as being much broader than climate change, but we also recognise it’s the largest single issue today. Clean energy and decarbonisation are no longer just vague aims – they are real goals with timelines and government support. Our strategy aligns with investors’ expectations that asset managers need to play a more active role to support this shift,” portfolio manager, Rebecca Myatt, said.
The fund would be managed using an active, bottom-up process of stock selection which focuses on valuation, asset quality and sustainability-related criteria.
“Engaging with company management enables us to understand a company better, and, where we believe it is necessary, to lobby for change. Through this engagement, we seek to highlight areas for potential improvement, encourage disclosure on ESG issues, and commend companies that are making progress in this area. We view this approach as being an important element of our fiduciary responsibilities,” Myatt said.
AUTHOR
Oksana Patron
Recommended for you
Bfinance Australia has shared five questions to ask when considering a semi-liquid private equity fund as their assets under management reach US$30 billion.
GQG Partners has announced its funds under management for February, but reported lower net flows during the month.
The days of “lunch and a handshake” are long gone for alternative fund managers, Bain & Company has said, as a slick sales organisation is needed if they are to benefit from the huge source of capital in private investors.
Ares Management is the latest fund manager to enact alternatives M&A, completing the acquisition of the international business of GLP Capital Partners to create a firm with US$525 billion in assets under management.
