Lazard's formula for finding the world's best infrastructure assets скачать в хорошем качестве

Lazard's formula for finding the world's best infrastructure assets

If someone offered you an investment opportunity that was monopolistic in nature, had inflation-protected revenues, high margins, and high free cash flow, would you take it? Of course, you would. Who wouldn't? Well, according to Warryn Robertson, that's the type of assets the Lazard Global Listed Infrastructure Fund targets. "For us, that's our investible universe, that select group of companies", says Robertson. While that all sounds fine in theory, according to Roberston, there is one important caveat. It involves having the discipline to stick to the process. "I think what makes us unique is that strict definition of what we call preferred infrastructure," he adds. "That strict adherence to that definition has served us incredibly well. "It means that we don't get distracted by opportunities that may look like infrastructure investments, but don't have that long-term visibility and sustainability of earnings and cash flows". A perfect example of that strict definition in practice is Lazard's avoidance of one of the hottest themes in the market right now - data centres. According to Robertson, "Yes, they have the physical characteristics of infrastructure, but they don't have those investment characteristics." He adds "They're not monopolistic; they're quite competitive. Others can go and build a new data centre tomorrow. The contract terms are quite short. They don't typically have CPI-linked revenues." Instead, Robertson prefers a company like National Grid (LON: NG) "which owns all the big poles and wires for electricity networks". Robertson also cites Ferrovial (BME: FER) as a core holding, the Spanish construction company that has grown into one of the leading owners of toll roads worldwide. That ability to refrain from getting distracted has served Robertson and investors well, with the Fund boasting an annual return of 9.79% (for the W class Fund, to 30 April 2024) since its inception (2005). In the following Fund in Focus, Robertson shares a little more about the Lazard process, the major trends in infrastructure right now, and some of the core holdings in the portfolio. He also explains why Lazard is now offering the Fund via an ETF.