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
Risk Considerations. There is no assurance that a portfolio will achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may not get back the amount originally invested. Portfolios may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees.
Further information on the potential risks can be found in the Key Investor Information Document (KIID) and/or the Prospectus or Offering Memorandum.
- Equity Risk. Portfolios that invest in securities listed on a stock exchange or market could be affected by general changes in the stock market. The value of investments can go down as well as up due to equity markets movements.
- Interest Rate Risk. As interest rates rise debt securities will fall in value. The value of debt is inversely proportional to interest rate movements.
- Concentration Risk. The Fund may be concentrated in a limited number of securities, economic sectors and/or countries. As a result, it may be more volatile and have a greater risk of loss than more broadly diversified funds.
- Counterparty Risk. The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations.
- Derivatives Risk. Derivatives can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset.
- Emerging Markets Risk. Emerging markets are less established, and often more volatile, than developed markets and involve higher risks, particularly market, liquidity and currency risks.
- Exchange Rate Risk. Changes in currency exchange rates could reduce or increase investment gains or investment losses, in some cases significantly.
- Investment Leverage Risk. Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source.
- Liquidity Risk. Liquidity Risk is the risk that a Fund may encounter difficulties meeting its obligations in respect of financial liabilities that are settled by delivering cash or other financial assets, thereby compromising existing or remaining investors.
- Operational Risk. Operational risks may subject the Fund to errors affecting transactions, valuation, accounting, and financial reporting, among other things.
- Style Risk. Different investment styles typically go in and out of favour depending on market conditions and investor sentiment.
- Model Risk. Model risk occurs when a financial model used in the portfolio management or valuation processes does not perform the tasks or capture the risks it was designed to. It is considered a subset of operational risk, as model risk mostly affects the portfolio that uses the model.
Important information
The presented fund is not authorized for offering according to Art. 120 of the Federal Collective Investment Schemes Act in Switzerland (CISA). This material is exclusively intended towards professional investors within the meaning of Art. 4 para 3 letter a – g of the Swiss Financial Services Act (FinSA). It is not intended towards professional clients who are not institutional clients according to Art. 4 para 4 FinSA and who wish to declare to be treated as retail clients according to Art. 5 para 5 FinSA (opting in), furthermore this product is not intended towards High-net-worth retail clients and private investment structures created for them that may declare that they wish to be treated as professional clients (opting out). There are further possibilities with regards to opting in and opting out according to FinSA, please refer to our website at https://www.assetmanagement.hsbc.ch/ if you wish to change your client categorization, please inform us.
HSBC Global Asset Management (Switzerland) AG having its registered office at Gartenstrasse 26, PO Box, CH-8002 Zurich has a licence 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 Talstrasse 20, 8001 Zurich. There are general risks associated with financial instruments, please refer to the Swiss Banking Association (“SBA”) Brochure “Risks Involved in Trading in Financial Instruments”.