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RISK FACTORS

This is a financial promotion for The First State Global Listed Infrastructure Strategy. This information is for professional clients only in the EEA and elsewhere where lawful. Investing involves certain risks including:

  • The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.
  • Currency Risk: Changes in exchange rates will affect the value of assets which are denominated in other currencies.
  • Single Sector Risk: Investing in a single sector may be riskier than investing in a number of different sectors. Investing in a larger number of sectors helps spread risk.
  • Charges to capital risk: The fees and expenses may be charged against the capital property. Deducting expenses from capital reduces the potential for capital growth.
  • Listed infrastructure risk: Investments in infrastructure may be vulnerable to factors that particularly affect the infrastructure sector, for example natural disasters, operational disruption and national and local environmental laws.

For details of the FCA authorised firms issuing this information and any funds referred to, please see Terms and Conditions and Important Information below.

For a full description of the terms of investment and the risks please see the Prospectus and Key Investor Information Document for each Fund.

If you are in any doubt as to the suitability of our funds for your investment needs, please seek investment advice.

Why invest in
listed infrastructure?

Tap into a relatively stable and growing segment of the share market by investing in essential services

Infrastructure assets have the potential to offer investors steady dividend growth, protection from inflation and long-term capital growth. These assets provide essential services - examples range from utilities and toll roads to railroads, ports, airports, energy pipelines, mobile towers and satellites. The listed infrastructure investment universe has a market capitalisation of over US$2,000 billion as at 31 January 2018, and continues to grow due to structural drivers including urbanisation, climate change, globalisation and the digital revolution. This broad and growing opportunity set gives investors the ability to build well-diversified and liquid portfolios. Investors are increasingly recognising that investments in these assets - backed by the right business model - have the potential to deliver attractive long-term returns. 

Infrastructure assets can offer lower volatility and some inflation protection, when compared to other equities

As owners of essential assets, infrastructure securities may deliver smoother returns than the broader share market during periods of higher market volatility. Water, power, transportation – these are services that consumers today can't go without, no matter what the stock market is doing. As a result, company cash flows tend to be very stable and relatively immune to economic cycles. Because inflation protection is built into many infrastructure assets’ pricing models, infrastructure can also provide a powerful defence against the adverse effects of inflation.

Gain liquid and diversified exposure to infrastructure, managed by a specialist team Our investment team constructs high conviction portfolios with appropriate exposure to both infrastructure growth and utilities income, which is important for performance throughout a full economic cycle. We seek to maximise risk-adjusted returns by conducting deep due diligence and then investing in quality companies that are at a discount to our estimate of intrinsic value. Our portfolios are well diversified by sector and country, reducing event, regulatory and political risk. Environmental, social and governance (ESG) issues are fundamental to infrastructure companies, given their significant service obligations and moral accountability to the communities in which they operate. ESG issues have therefore been incorporated into our investment process through our quality ranking model. 

Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement.

ESG issues are fundamental to infrastructure companies, given they have significant service obligations and moral accountability to the communities in which they operate. ESG analysis is integrated into our investment process through our quality assessment and ranking model. This model consists of 25 criteria that influence stock returns in general and infrastructure securities in particular. A score is assigned to each criterion; a lower quality score makes it harder for a stock to be included within the overall portfolio. ESG criteria account for 20% of the overall quality score. Learn more about the Global Listed Infrastructure team's approach to Responsible Investment.


Why First State?

  • A specialist, experienced and stable team with a disciplined investment approach
  • Over 15 years managing global listed infrastructure assets
  • Active management making over 500 company visits per year
  • Integration of ESG throughout the investment process 


- Morningstar 5* rating

- Morningstar Bronze rating

- Morningstar Sustainability rating

- Morningstar Carbon risk rating