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.