PATRIZIA Infrastructure’s listed infrastructure portfolios provide investors with a diversified portfolio of quality listed infrastructure investments.
Investment in listed infrastructure is offered through customised portfolios designed to complement our client’s unlisted real assets holdings.
PATRIZIA’s listed infrastructure strategy is designed to provide a defensive equity exposure which provides a cash yield and downside protection.
Fundamental to this is the definition of what constitutes ‘core’ infrastructure. Each stock is assessed against the same core infrastructure criteria that we use to assess infrastructure in private markets. Specifically, financial and operating data is reviewed to establish whether:
- The assets generate stable operating cash flows
- The company has high margins and high capital costs
- The earnings have an inflation hedge
- The company has monopoly characteristics
We then apply stringent quality screens, designed to ensure that each infrastructure company has a strong track record of consistent free cash flow generation and a sustainable balance sheet. The best value stocks are then selected for the portfolio, subject to review of the risk profile of each stock, and review of the resulting sector and risk factor portfolio exposures. Risk factors include regulatory risk, credit market risk and carbon risk, amongst others.