HSBC Asset Management

Infrastructure is the backbone of society, providing essential services for economic growth and supported by the multi-decade secular trends of energy transition and digitalisation. Operating in industries with high barriers to entry and supported by regulation and/or take-or-pay contracts, infrastructure exhibits resilient and inflation-hedged earnings growth, defensive cash flow characteristics, and above average yields making it an attractive proposition for investors.

We believe the long-term nature of infrastructure assets and cash flows are best suited to bottom-up, fundamental analysis. Our philosophy recognizes that not all infrastructure assets are the same. As such, we focus on core infrastructure assets; that is, assets with lower volatility of cash flows and higher expected risk adjusted long term returns. We implement an analysis framework that combines a comprehensive quality assessment and a long-term value-based investment approach.