Mobile & broadcasting towers- Data centres
- Optical fiber
- Satellites
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
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:
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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:
- 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 | ||||||
|---|---|---|---|---|---|---|---|
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6 |
Investment and research |
5+ |
Years of co-tenure |
15+ |
Average years |
10+ |
Years of dedicated |
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.
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Key risks
There is no assurance that a portfolio will achieve its investment objective or perform under all market conditions. The value of investments may fall as well as rise, and investors may not recover the amount originally invested. Portfolios may be subject to additional risks, which should be considered carefully alongside investment objectives and associated fees. Further information on potential risks is available in the Key Investor Information Document (KIID), Prospectus, or Offering Memorandum.
- Equity Risk: Investments in listed equities may be impacted by general market movements. Equity values can fluctuate, resulting in gains or losses
- Interest Rate Risk: Rising interest rates typically cause the value of fixed-income securities to decline
- Concentration risk: A portfolio focused on a limited number of securities, sectors or countries may be more volatile and exposed to higher loss potential compared to a broadly diversified fund
- Counterparty risk: The risk that a counterparty may default on its contractual obligations
- Derivatives risk: Derivative instruments can exhibit complex behavior. Their pricing and volatility may not correspond directly with their underlying assets
- Emerging Markets Risk: Investments in emerging markets involve higher risks due to potential political instability, limited liquidity, weaker regulatory structures and currency volatility
- Exchange Rate Risk: Currency fluctuations may positively or negatively affect investment returns
- Investment Leverage Risk: leveraged investments may magnify both gains and losses relative to market movements
- Liquidity Risk: The fund may encounter difficulties in meeting redemption or other payment obligations due to limited market liquidity
- Operational Risk: Errors in systems, processes or controls may negatively impact the fund, including valuation and reporting inaccuracies
- Style Risk: Market preferences for certain investment styles (e.g. growth vs. value) can change over time, impacting portfolio performance
- Model risk: The risk that a financial model used in portfolio construction or valuation may be flawed, leading to suboptimal outcomes. This is considered a form of operational risk
Important information
The presented fund is not authorized for public offering in Switzerland under Article 120 of the Federal Act on Collective Investment Schemes (CISA, KAG).
This material is exclusively intended for professional investors as defined in Article 4(3)(a-g) of the Swiss Financial Services Act (FinSA, FIDLEG).
This material is not intended for:
- Professional clients who are not institutional clients under Article 4(4) FinSA and who wish to opt-in for treatment as retail clients under Article 5(5) FinSA Or
- High-net-worth (HNW) retail clients and private investment structures created for them, who may declare themselves as professional investors (opting out)
Additional opting-in and opting-out options are available under FinSA. For further details, please refer to our website: https://www.assetmanagement.hsbc.ch/. If you wish to change your client categorization, please inform us.
Important Notice
When distributing this material solely to professional investors, the local business developer/client services team must include a copy of the Key Information Document (KID) and the Prospectus in the documentation. Please refer to the investor category overview for further details. HSBC Global Asset Management (Switzerland) AG having its registered office at Gartenstrasse 26, PO Box, CH-8002 Zurich has a license as an asset manager of collective investment schemes and as a representative of foreign collective investment schemes. Disputes regarding legal claims between the Client and HSBC Global Asset Management (Switzerland) AG can be settled by an ombudsman in mediation proceedings. HSBC Global Asset Management (Switzerland) AG is affiliated to the ombudsman FINOS having its registered address at Tal Strasse 20, 8001 Zurich.
Investments in financial instruments carry general risks. For further details, please refer to the Swiss Bankers Association (SBA) brochure: "Risks Involved in Trading Financial Instruments."