Infrastructure & Real Assets

Assets

Long-life assets producing cash flow under contract or under a regulatory determination, held alongside the property and equity books.

Terms

No debt at asset level. Single positions are capped at 3 per cent of the book.

Revenue

Revenue is contracted or set by a regulator rather than determined in a competitive market. Assets whose revenue depends on a forecast of demand rather than an existing agreement to pay are not held.

Valuation

Assets without a quoted price are valued on replacement cost and on the discounted value of contracted cash flows, cross-checked against comparable transactions, with no terminal growth assumed.

Review

Reviewed annually against the written thesis, including any change to the regulatory setting or concession terms.

Risks

Regulatory change, contract renewal terms, and maintenance capital expenditure exceeding the assumptions. Each is tested in the annual review.

Elsewhere in the Portfolio

Other work in the portfolio

Two further positions that illustrate how the office allocates capital across asset classes.

Equities

Australian Quality Equities Portfolio

A concentrated book of listed Australian businesses selected on durable earnings and balance sheet strength.

Core holding since 2023View →

Credit

Fixed Income & Liquidity Reserve

Short-dated government and bank paper sized to fund twelve months of obligations without forced selling.

Rolling mandateView →

Position Facts

The position at a glance

Nil

Debt at asset level

Contracted

Revenue profile

Annual

Review cycle

Single position cap

Questions on This Position

Questions about this position

Questions asked about this position.

What qualifies as a real asset for the office?

A long-life asset producing cash flow under contract or regulation, with high replacement cost and a service that is not discretionary.

Assets whose revenue depends on a forecast of demand rather than an existing agreement to pay are not held.

How do you value assets with no quoted price?

On replacement cost and the discounted value of contracted cash flows, cross-checked against comparable transactions, with no terminal growth assumed.

Assets that require a better exit than entry are declined.

What are the principal risks?

Regulatory change, contract renewal terms, and maintenance capital expenditure exceeding the assumptions. Each is tested in the annual review.

Cash flow must be contracted or regulated rather than expected.

Positions are reviewed annually against the thesis recorded at purchase.

Discuss a Position

Discuss a real assets opportunity

If you are working on a long-life asset with contracted cash flows and are looking for a patient, unlevered owner, write to the office.

Substantive enquiries are answered within two business days.
Commercial information is treated as confidential.