Global Listed Infrastructure

This is no ordinary team

Infrastructure powers the world we live in – and when it comes to on-the-ground research our team isn’t afraid to get their steel-capped boots dirty. Armed with hard hats and a sharp eye for the factors that drive asset outperformance, the team’s extensive site visit program takes them from energy pipelines to wind farms.

We search for best-in-class assets worldwide

Meet Peter Meany

When it comes to teamwork, the skills you learn on the touch footy field can be useful in managing a world-class investment capability. Peter Meany shares his secrets to success on and off the field.

Infrastructure the world relies on

Over the past 15 years, global listed infrastructure has delivered over 3% more than global equities on average with a lower level of risk.*

These attractive risk-adjusted returns have been delivered by assets with high barriers to entry, strong pricing power, predictable cash flows and sustainable growth.

Growth of a $10,000 investment

Source: First Sentier Investors. Performance is net of fees. Past performance is not indicative of future performance. This chart shows performance of the FTSE Global Core Infrastructure 50/50 Net TR (AUD Hedged) from 1 April 2015, previously UBS, with monthly data from 30 June 2007 to 31 July 2019.
The CFS Wholesale Global Listed Infrastructure Securities Fund name will be changed to reflect the new brand name in mid-2020. It will be referred to as the Fund on this webpage.

Global listed infrastructure has historically outperformed global equities in down markets

Infrastructure assets provide essential services. As a result, company cash flows tend to be stable and relatively immune to economic cycles. Infrastructure can offer lower volatility and some inflation protection, when compared to other equities.

Source: First Sentier Investors. Past performance is not indicative of future performance. This chart shows the FTSE Global Core Infrastructure 50/50 Net TR (AUD Hedged) from 1 April 2015, previously UBS, with monthly data from 30 June 2007 to 31 July 2019.
Worldwide, billions of people rely on infrastructure to live and do business. The airports we travel through, toll roads we drive on and the water we drink are essential and valuable assets to any economy.
Peter Meany
Head of Global Listed Infrastructure

A world of opportunity around every corner

From railroads to pioneers in wind power, we search the world for high quality, mispriced infrastructure assets. 

Based on our analysis, many global equity managers hold less than 2% of their portfolios in infrastructure assets – and these positions tend to be concentrated in the larger utility names. 

We have generated much of our alpha from growing mid cap stocks, such as toll roads, oil storage and gas utilities, which are often under-researched by global equity managers. 

Australian toll road operator Transurban does much more than build toll roads. They are a future-oriented technology company focused on reducing congestion, increasing safety and ensuring readiness for driverless cars.
Peter Meany
Head of Global Listed Infrastructure

On the road from Sydney to Washington

We look at 12-15 toll road businesses globally, and we’ve found that Transurban’s management – and operations in Australia and North America – are world best practice. Recognising their potential for growth, we initiated a position in 2011 and have since realised annual average returns of more than 20%.

Putting driverless cars on Australia’s roadmap

Transurban has transformed from a ‘construction’ company to a company where 40% of employees work in technology. They are preparing for the advent of electric and autonomous vehicles and the changing patterns of road use they will bring. They use military-grade video-capture technology to reduce accidents and congestion on their roads.

An exceptional infrastructure asset

With a sustainable yield of almost 5% growing at 5-8% per annum, Transurban offers high quality assets with limited economic sensitivity and pricing linked to inflation – or better.

Peter Meany
Head of Global Listed Infrastructure
Peter Meany

Transurban is one of the largest positions in our portfolio

Source: First Sentier Investors and Transurban as at 2019. Chart shows earnings before interest, tax, depreciation and amortization. 
The earnings for 2019 and onwards are expected earnings based on First Sentier Investors forecasts and are predictive in nature and therefore not guaranteed to occur. They may be affected by inaccurate assumptions, known or unknown risks and uncertainties and may differ materially from the results ultimately achieved.

A different take on markets in 2019

Portfolio Manager Trent Koch shares his outlook, the drivers of performance in the Fund, and where the team sees the best opportunities ahead. 

Why First Sentier Investors?