Stockholm (NordSIP) First State Investments, the global asset management business, has announced the launch of the First State Sustainable Listed Infrastructure Fund to meet growing demand from UK and European investors for inflation-protected income and strong capital growth offered by listed infrastructure in a product that also meets their sustainability criteria.
The fund will be part of First State’s Dublin-domiciled Fund range and consists of a high conviction portfolio of global listed infrastructure stocks. It will build on its team’s best-in-class stock selection, with an enhanced focus on sustainability, including tailored portfolio construction and active engagement on ESG issues. Portfolio Manager Rebecca Sherlock has been appointed to manage the fund.
The Fund’s investment philosophy places an emphasis on investing in quality companies over the long term, seeking those with high barriers to entry, strong pricing power, sustainable growth and predictable cash flows. Its investable universe includes utilities, toll roads, passenger and freight rail, ports, airports, energy pipelines and storage facilities, mobile towers and satellites.
“Our clients are seeking investment solutions that deliver on their commitments to sustainable investing,” said First State Head of Global Listed Infrastructure Peter Meany in a press release. “The launch of the First State Sustainable Listed Infrastructure Fund reflects investor demand for the real income and structural growth of infrastructure assets together with a greater emphasis on meeting sustainability criteria.”
Portfolio Manager Rebecca Sherlock added: “Infrastructure assets are large scale, long life, tangible assets having significant environmental footprints and social licenses to operate. This means that small changes to the way a company operates can have meaningful changes to people, the planet and its ability to generate sustainable economic returns. This fund was developed through our fundamental belief that a focus on sustainability is integral to reducing risk and achieving positive long-term return outcomes.”
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