The Europa Clear Bank Infrastructure Fund invests mainly in the equity capital of private infrastructure companies and/or projects. The yields from the investment objects are usually reasonably resistant to fluctuations in the economy. They also often provide a high dividend return and are more or less inflation-resistant. These features make infrastructure investments attractive for pension funds. Infrastructure companies provide products and services that are important for the functioning of a society and economy.
They are also often regulated by the government. The barriers to entry are high because they require high investment sums. These kinds of companies often have an implicit or explicit monopoly position. Examples include water purification installations, electricity, gas, water and oil distribution networks, power plants, schools and hospitals, toll roads, airports, seaports, waste processing companies and generation capacity for wind and solar energy.
In order to be able to offer a favorable risk-return profile, we spread the investments across risk styles, regions, sectors and individual investments.
We invest in funds, partnerships (joint ventures), co-investments and direct investments. The last three offer the possibility of more direct steering of the composition and expansion of the portfolio. We also have more control of and say in the investments. The investment conditions for joint ventures, co-investments and direct investments are also usually more favorable than for funds, especially from the perspective of costs.
Infrastructure investments are typically held in the portfolio for more than ten years.
Europa Clear Bank Asset Management is a front-runner in sustainability in the infrastructure sector. We help to improve the infrastructure sector’s performance with regard to the environment and society.
Risk
In the investment policy, we put the emphasis on the stability and security of the income flows. A well-diversified infrastructure portfolio requires that participants in the Europa Clear Bank Infrastructure Fund commit to the successive vintage funds over a series of years. This creates an optimally diversified portfolio. Infrastructure investments are usually relatively illiquid. The size of the investments is also a factor in this.