View transcript
Listed infrastructure consists of the assets and businesses that we use every day, from utilities to transportation infrastructure to digital infrastructure to power our increasingly virtual lives. And it's the reliability and consistency of use of these assets and businesses that brings with it reliable and consistent cashflow streams from the businesses that operate and own these assets. In our strategy, we take a broader interpretation of infrastructure. Using a multi thematic approach, we broaden in the universe to take into account the increasingly digital virtual society that we live in investing in digital infrastructure, businesses and assets, as well as payments, infrastructure and royalty businesses. So this is broadening our approach beyond the traditional aspect of listed infrastructure, which we also invest in to incorporate a new and differing and changing world that we live in. Typically listed infrastructure is seen as a higher yield asset class, and it is true that we offer a premium dividend yield to the broader market. But importantly, what we focus on is the growth in the dividend stream, and to do that, we invest in businesses and assets with very long life assets and the ability for them to grow their cash flow streams over time and therefore their dividends. When we invest over the long term, it's extremely important that we incorporate SG and sustainability into our analysis to ensure that we don't lose the social licence to operate so that we don't face stranded asset risk, ensuring that we can deliver those growing cash flow streams and distributions to our unit holders over time. Listen, infrastructure brings with it some extremely beneficial characteristics, such as a lower drawdown and volatility than the broader market as well as a premium dividend yield. We specifically focus on the growth in the dividend stream so that we can deliver on increasing distribution to our unit holders year after year. We take a broader global approach to the asset class that takes into account an ever changing world that is increasingly becoming more digital. And for that reason we are very excited about the long term prospects for this asset class and very excited about what thematic tail winds it has behind it.