The MBA Global Listed Infrastructure team is committed to actively integrating ESG factors into the investment process, engaging with companies on ESG issues and aligning proxy voting decisions with shareholders’ best interests. As investors in long-dated assets that provide essential services, our research identifies companies that we believe are sustainable, capitalising on emerging opportunities and managing ESG risks appropriately. We see it as our fiduciary responsibility to consider the financial and non-financial issues which may impact the performance of our clients’ assets.
Mirrored off our equity research approach, ESG research is conducted in-house and shared across the investment team with the guidance of a dedicated ESG Analyst within the team. Our proprietary stock ranking process includes a 20% weighting to the quality of management and corporate governance, while environmental and social risks are incorporated into the 50% weighting to company valuation, along with a 15% weighting to cashflow volatility. Inflation protection comprises the remaining 15% weighting.
We focus on the ESG issues that may impact the sustainability of future cashflows and seek out high quality and well-managed infrastructure companies with attractive valuations. The resulting portfolio exhibits strong inflation protection characteristics, lower volatility relative to global equities markets and strategic exposure to companies with strong financial and non-financial fundamentals. In addition to this, we work closely with clients to create tailored ESG solutions to complement their investment needs and philosophy.
ESG factors that the team considers in research and engagement includes:
ESG and opportunities for investing in listed infrastructure
Andrew Maple-Brown, Co-Founder and Managing Director, Maple-Brown Abbott Global Listed Infrastructure, and Georgia Hall, ESG Analyst, Maple-Brown Abbott Global Listed Infrastructure, spoke to Zenith Investment Partners in an in-depth interview about the infrastructure sector, ESG and the energy transition.
They talked about why ESG is critical to the asset class and what ‘net zero’ means for companies setting targets by 2050. They discussed the energy transition and why regulated electric utilities are the ‘underappreciated’ means to investing in renewables and as an investment opportunity generally.
Thank you to Zenith Investment Partners for providing the opportunity to share these insights.
This content is intended to provide general information only. It does not constitute advice and should not be relied upon as such. You should seek investment advice in respect of your individual circumstances.