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Infrastructure Equity

Our philosophy recognises the diversity of infrastructure assets

At HSBC Asset Management, our infrastructure equity strategy focuses on four sector verticals: utilities, energy infrastructure, transportation and communications. We aim to provide long term total return while promoting ESG characteristics within the meaning of Article 8 of SFDR.

Detailed information for article 8 and 9 sustainable investment products, as categorised under the Sustainable Finance Disclosure Regulation (SFDR), including; description of the environmental or social characteristics or the sustainable investment objective; methodologies used to assess, measure and monitor the environmental or social characteristics and the impact of the selected sustainable investments and; objectives and benchmark information, can be found at: Sustainable Investment Product Offering

Getting to know Listed Infrastructure

Want to know more about Listed Infrastructure as an asset class? Watch this video to know about HSBC’s Global Listed Infrastructure strategy, the portfolio philosophy and the benefit it brings to investors.

Why invest in Infrastructure as an asset class?

Infrastructure is important to society, providing necessary services for the stability and growth of the economy. Naturally resilient, infrastructure assets can generate inflation-linked, long-dated and sustainable earnings growth through the economic cycles.

In our view, infrastructure is at the beginning of a longer term investment cycle, due to secular trends such as energy transition and digitalisation.

Why Listed Infrastructure?

Listed infrastructure offers immediate and liquid access to core infrastructure assets and the potentially attractive risk adjusted returns could provide diversification to a balanced portfolio.

Potential benefits of investing in Listed Infrastructure:

Long duration assets with the potential to generate resilient and visible cashflows	Real assets providing a potential hedge in an inflationary environment	Potentially high distribution levels appealing to investors searching for yield
Secular growth pathway driven by a longer term investment cycle	Liquidity providing immediate exposure to infrastructure assets	Defensive building block to a diversified equity portfolio

Any forecast, projection or target when provided is indicative only and is not guaranteed in any way. Diversification does not ensure a profit or protect against loss.

Please refer to the key risks section below for further information on the key risks associated with investing in Listed Infrastructure Equity.

Infrastructure assets play an imporant role in society

Infrastructure assets include public and private physical structures and facilities which are necessary for the core stability and growth of any economy, developed or developing, by providing services to society.

We invest in companies, listed in equity markets, which own and/or operate core infrastructure assets across these four broad sectors:

Mobile & broadcasting towers
Data centres
Optical fiber
Satellites

Oil and gas transport
Midstream
Hydrogen & carbon capture

Airports
Ports
Rail
Toll roads

Transmission & distribution
Natural gas
Water & waste
Power generation
Renewables

Our team and investment approach

Dedicated team of seasoned investment experts

Dual research hub - London and Sydney				Strong experience
6	Investment and research professionals solely dedicated to Listed Infrastructure	5+	Years of co-tenure	15+	Average years of investment experience	10+	Years of dedicated coverage of the infrastructure sector

Source: HSBC Asset Management as of September 2023. The investment team may change from time to time without notice.

Our investment approach:

Recognises that not all infrastructure assets are the same
Filters for core infrastructure assets with stable and resilient cash flows
Seeks to enhance the attractive characteristics of the asset class through a robust and proprietary investment process
Adopts a rigorous bottom-up research process supported by two key pillars – quality and value
Mitigates macro-related risks through an efficient bottom-up portfolio construction with a top-down overlay
Third party support for integration of ESG analysis - we combine the investment team’s experience and external data provider intelligence to form an integrated ESG approach

The decision to invest in the fund should take account of all the characteristics or objectives as described in the prospectus or equivalent document. Detailed information for article 8 and 9 sustainable investment products, as categorised under the Sustainable Finance Disclosure Regulation (SFDR), including; description of the environmental or social characteristics or the sustainable investment objective; methodologies used to assess, measure and monitor the environmental or social characteristics and the impact of the selected sustainable investments and; objectives and benchmark information, can be found at: Sustainable Investment Product Offering

Source: HSBC Asset Management, August 2023.

Contact us

If you are considering investing in infrastructure equity, or want to learn more about our investment strategies, please get in touch.

Ready to talk?

Key risks

Risk Considerations. There is no assurance that a portfolio will achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may not get back the amount originally invested. Portfolios may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees.

Further information on the potential risks can be found in the Key Investor Information Document (KIID) and/or the Prospectus or Offering Memorandum.

Equity Risk. Portfolios that invest in securities listed on a stock exchange or market could be affected by general changes in the stock market. The value of investments can go down as well as up due to equity markets movements.
Interest Rate Risk. As interest rates rise debt securities will fall in value. The value of debt is inversely proportional to interest rate movements.
Concentration Risk. The Fund may be concentrated in a limited number of securities, economic sectors and/or countries. As a result, it may be more volatile and have a greater risk of loss than more broadly diversified funds.
Counterparty Risk. The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations.
Derivatives Risk. Derivatives can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset.
Emerging Markets Risk. Emerging markets are less established, and often more volatile, than developed markets and involve higher risks, particularly market, liquidity and currency risks.
Exchange Rate Risk. Changes in currency exchange rates could reduce or increase investment gains or investment losses, in some cases significantly.
Investment Leverage Risk. Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source.
Liquidity Risk. Liquidity Risk is the risk that a Fund may encounter difficulties meeting its obligations in respect of financial liabilities that are settled by delivering cash or other financial assets, thereby compromising existing or remaining investors.
Operational Risk. Operational risks may subject the Fund to errors affecting transactions, valuation, accounting, and financial reporting, among other things.
Style Risk. Different investment styles typically go in and out of favour depending on market conditions and investor sentiment.
Model Risk. Model risk occurs when a financial model used in the portfolio management or valuation processes does not perform the tasks or capture the risks it was designed to. It is considered a subset of operational risk, as model risk mostly affects the portfolio that uses the model.

Important information

For Professional Clients only and should not be distributed to or relied upon by Retail Clients.

Issued and approved in the UK by HSBC Global Asset Management (UK) Limited (“AMEU”), which is authorised and regulated by the Financial Conduct Authority. HSBC Asset Management is a group of companies in many countries and territories throughout the world that are engaged in investment advisory and fund management activities, which are ultimately owned by HSBC Holdings Plc. HSBC Asset Management is the brand name for the asset management business of the HSBC Group.

The material contained herein is for marketing purposes and is for your information only. This document is not contractually binding nor are we required to provide this to you by any legislative provision. It does not constitute legal, tax or investment advice or a recommendation to any reader of this material to buy or sell investments. You must not, therefore, rely on the content of this document when making any investment decisions. This document is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe to any investment. The contents are confidential and may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. This document is intended for discussion only and shall not be capable of creating any contractual or other legal obligations on the part of AMEU or any other HSBC Group company. This document is based on information obtained from sources believed to be reliable but which have not been independently verified. AMEU and HSBC Group accept no responsibility as to its accuracy or completeness. Care has been taken to ensure the accuracy of this presentation but AMEU accepts no responsibility for any errors or omissions contained therein.

This document and any issues or disputes arising out of or in connection with it (whether such disputes are contractual or non-contractual in nature, such as claims in tort, for breach of statute or regulation or otherwise) shall be governed by and construed in accordance with English law.

Any views expressed were held at the time of preparation and are subject to change without notice. While any forecast, projection or target where provided is indicative only and not guaranteed in any way. AMEU accepts no liability for any failure to meet such forecast, projection or target. The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Any performance information shown refers to the past and should not be seen as an indication of future returns.

Recipients of this communication who intend to acquire an investment in a Fund are reminded that any such acquisition may only be made on the basis of the final form of the Offering Memorandum or Prospectus, fund legal documentation, and on satisfaction of the requirements of the applicable Subscription Document. It is the responsibility of prospective investors to satisfy themselves as to full compliance with the relevant laws and regulations of any territory in connection with any application to participate in the Fund.

www.assetmanagement.hsbc.co.uk/en/intermediary/investment-expertise/sustainable-investments/sustainable-investment-product-offering

To help improve our service and in the interests of security we may record and/or monitor your communication with us. AMEU provides information to Institutions, Professional Advisers and their clients on the investment products and services of the HSBC Group.