KBI Global Investors has launched KBIGI Global Sustainable Infrastructure Strategy, part of its Natural Resources suite of strategies.
The firm writes that an interest in an allocation to infrastructure has grown significantly in recent years as investors place a greater emphasis on real assets and look to achieve broader diversification.
“Sadly, many continue to steer clear of the asset class on the grounds of liquidity, or rather a lack of it – but that is to miss an opportunity, for the listed market offers an increasingly popular means of accessing infrastructure assets, and combines the most attractive attributes of private infrastructure with the benefits of liquidity and daily pricing.”
The firm writes that significant population growth, rapidly expanding cities, growing societal and economic demand, and the number of ageing and depleted assets in need of rehabilitation or replacement means the demand for clean, safe and high-quality water, energy and food will continue to grow.
The new Global Sustainable Infrastructure Strategy will offer access to a global portfolio of sustainable publicly traded infrastructure companies, delivering solutions in these critical areas.
The experienced natural resources investing team at KBIGI 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.
The new Strategy, which seeks to deliver strong investment returns within a robust framework, lower volatility and a dividend yield of between 3.5 per cent and 4.5 per cent, offers exposure to the World’s most critical resources. The firm writes that 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 – and in doing so, it will offer investors better liquidity than the private market, and enable them to deploy their capital with immediate effect.
