In 2015, recognising the demand from UK pension schemes and insurance companies, we established an experienced team specialising in infrastructure assets.
The Infrastructure Finance Team comprises 15 investment professionals and a legal and compliance manager based in Paris, alongside an analyst and investment director support professionals based in London (as at 30 June 2019). Senior members of the team have worked together since 2013, initially at AXA and since 2015, at Schroders.
Asset origination is underpinned by robust credit analysis, careful relative value analysis, a commitment to ESG criteria and a strong network of relationships. These relationships allow the team access to the best transactions available in the market.
The team analyses approximately three hundred opportunities each year and selects ten to twenty projects under strict risk/ return criteria.
We believe our track record in making European Infrastructure Debt investments is unique in the European market. Not only by the speed of capital deployment, but also by the quality and diversification of investments executed by the team (as at 30 June 2019)
Interest rate risk for fixed-rate instruments: Interest rate volatility may reduce the performance of fixed-rate instruments. A rise in interest rates generally causes prices of fixed-rate instruments to fall.
Deterioration of the credit quality of the bond: Caused by a change in the market environment (for commercial activities) or a change in law/regulation (for all infrastructure activities).
Risk of issuer default: A decline in the financial health of an issuer can cause the value of its bonds to fall or become worthless.
Prepayment risk: The capital may be repaid by the borrower before reaching maturity.
Exchange rate risk: Where assets are denominated in a currency different to that of the investor, changes in exchange rates may affect the value of the investments.
Illiquid and long term investment risk: Due to the illiquid nature of the underlying investments, an investor may not be able to realise the invested capital before the end of the contractual arrangement (which is likely to be long term). If the investment vehicle is required to liquidate parts of its portfolio for any reason, including in response to changes in economic conditions, the investment vehicle may not be able to sell any portion of its portfolio on favourable terms or at all.
Capital loss: The capital is not guaranteed and investors may suffer substantial or total losses of capital.
Trade cancellation risk: Trades and settlements are made on a bilateral, negotiated basis. A last-minute trade cancellation can occur in the absence of standard trade and settlement processes via clearing houses.
Service provider risk: Investments can be at risk due to operational and administrative errors, or the bankruptcy of service providers.