The Commonwealth Bank of Australia’s arm First State Investments has launched a fund to target listed infrastructure.
First State Investments UK said First State Sustainable Listed Infrastructure Fund has been set up to meet 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, which is part of as part of company’s Dublin-domiciled fund, consists of a portfolio of global listed infrastructure stocks.
First State said the fund will target utilities, toll roads, passenger and freight rail, ports, airports, energy pipelines and storage facilities, mobile towers and satellites.
Rebecca Sherlock, the fund’s portfolio manager, said: ”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,” Sherlock said.
Peter Meany, the head of global listed infrastructure at First State, said: “Our clients are seeking investment solutions that deliver on their commitments to sustainable investing.
“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.”