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Infrastructure Equity

Investing in infrastructure for a better future

HSBC GIF Global Infrastructure Equity Fund

Investing in infrastructure for a better future

At HSBC Asset Management, our Infrastructure Equity strategy focuses on four sector verticals: Utilities, Energy Infrastructure, Transportation and Communications. We aim to provide long term total return while promoting ESG characteristics within the meaning of Article 8 of SFDR.

Detailed information for article 8 and 9 sustainable investment products, as categorised under the Sustainable Finance Disclosure Regulation (SFDR), including; description of the environmental or social characteristics or the sustainable investment objective; methodologies used to assess, measure and monitor the environmental or social characteristics and the impact of the selected sustainable investments and; objectives and benchmark information, can be found at: Sustainability related disclosures

Article 8 SFDR = The product promotes environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices even if this is not its central point, or the central point of the investment process. More information on our ‘Responsible Investment’ Policy and ‘Implementation Procedures’ can be found on our website. The decision to invest in the promoted fund should take into account all the characteristics or objectives of the promoted fund as described in its prospectus.

Investing in a better future


Invest in Infrastructure as an asset class

Infrastructure is the backbone of society, providing essential and valuable services for the stability and growth of the economy. Naturally resilient, infrastructure assets can generate inflation-linked, long-dated and sustainable earnings growth through the economic cycles.

Infrastructure is at the beginning of a multi-decade investment cycle, due to secular trends such as energy transition and digitalisation.

We invest in companies, listed in equity markets, which own and/or operate core infrastructure assets across these four broad sectors:

Listed Infrastructure

By its very nature, Listed Infrastructure offers immediate and liquid access to core infrastructure assets and the attractive risk adjusted returns provide appealing diversification to a balanced portfolio.


Potential benefits of investing in Listed Infrastructure:

Long duration assets generating resilient and visible cashflows Icon
Long duration assets generating resilient and visible cashflows

Real assets providing a natural hedge in an inflationary environment icon
Real assets providing a natural hedge in an inflationary environment

Potentially high distribution levels appealing to investors searching for yield icon
Potentially high distribution levels appealing to investors searching for yield

Secular growth pathway driven by a multi-decade investment cycle icon
Secular growth pathway driven by a multi-decade investment cycle

Liquidity providing immediate exposure to infrastructure assets icon
Liquidity providing immediate exposure to infrastructure assets

Defensive building block to a diversified equity portfolio icon
Defensive building block to a diversified equity portfolio

The performance figures displayed in the document relate to the past and past performance should not be seen as an indication of future returns. Diversification does not ensure a profit or protect against loss.

Please refer to the key risks section below for further information on the key risks associated with investing in Listed Infrastructure Equity.

Infrastructure assets play a pivotal role in society

Infrastructure assets include public and private physical structures and facilities which are necessary for the core stability and growth of any economy, developed or developing, by providing essential services to society.

We invest in companies, listed in equity markets, which own and/or operate core infrastructure assets across these four broad sectors:

  • Mobile & broadcasting towers
  • Data centres
  • Optical fiber
  • Satellites
  • Oil and gas transport
  • Midstream
  • Hydrogen & carbon capture
  • Airports
  • Ports
  • Rail
  • Toll roads
  • Transmission & distribution
  • Natural gas
  • Water & waste
  • Power generation
  • Renewables

Our team and investment approach

Dedicated team of seasoned investment experts

Dual research hub - London and Sydney Strong experience
6

Investment and research professionals solely dedicated to Listed Infrastructure

5+

Years of co-tenure

15+

Average years of investment experience

10+

Years of dedicated coverage of the infrastructure sector

Source: HSBC Asset Management as of September 2023. The investment team may change from time to time without notice.

 

Our investment approach:

  • Recognises that not all infrastructure assets are the same
  • Filters for core infrastructure assets with stable and resilient cash flows
  • Seeks to enhance the attractive characteristics of the asset class through a robust and proprietary investment process
  • Adopts a rigorous bottom-up research process supported by two key pillars – quality and value
  • Mitigates macro-related risks through an efficient bottom-up portfolio construction with a top-down overlay

Source: HSBC Asset Management, June 2022.

 

ESG is a core focus in our investment process and continues to evolve:

  • Sustainability factors and drivers are fully embedded in our investment philosophy and process in order to deliver superior risk-adjusted returns for our clients
  • Third party support for full integration of ESG analysis - we combine the investment team’s experience and external data provider intelligence to form an integrated ESG approach
  • We believe that engaging and encouraging companies rather than “excluding” them will result in more sustainable long-term outcomes

The decision to invest in the fund should take account of all the characteristics or objectives as described in the prospectus or equivalent document. Detailed information for article 8 and 9 sustainable investment products, as categorised under the Sustainable Finance Disclosure Regulation (SFDR), including; description of the environmental or social characteristics or the sustainable investment objective; methodologies used to assess, measure and monitor the environmental or social characteristics and the impact of the selected sustainable investments and; objectives and benchmark information, can be found at: Sustainability related disclosures

Article 8 SFDR =The product promotes environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices even if this is not its central point, or the central point of the investment process. More information on our ‘Responsible Investment’ Policy and ‘Implementation Procedures’ can be found on our website. The decision to invest in the promoted fund should take into account all the characteristics or objectives of the promoted fund as described in its prospectus.

Getting to know Listed Infrastructure

Getting to know Listed Infrastructure

Want to know more about Listed Infrastructure as an asset class? Watch this video to know about HSBC’s Global Listed Infrastructure strategy, the portfolio philosophy and the benefit it brings to investors.

Contact us

If you are considering investing in Infrastructure Equity, or want to learn more about our investment strategies, please get in touch.

Ready to talk?

Key risks

Risk Considerations. There is no assurance that a portfolio will achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may not get back the amount originally invested. Portfolios may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees.

Further information on the potential risks can be found in the Key Information Document (KID) and/or the Prospectus or Offering Memorandum.

  • Equity Risk. Portfolios that invest in securities listed on a stock exchange or market could be affected by general changes in the stock market. The value of investments can go down as well as up due to equity markets movements.
  • Interest Rate Risk. As interest rates rise debt securities will fall in value. The value of debt is inversely proportional to interest rate movements.
  • Concentration Risk. The Fund may be concentrated in a limited number of securities, economic sectors and/or countries. As a result, it may be more volatile and have a greater risk of loss than more broadly diversified funds.
  • Counterparty Risk. The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations.
  • Derivatives Risk. Derivatives can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset.
  • Emerging Markets Risk. Emerging markets are less established, and often more volatile, than developed markets and involve higher risks, particularly market, liquidity and currency risks.
  • Exchange Rate Risk. Changes in currency exchange rates could reduce or increase investment gains or investment losses, in some cases significantly.
  • Investment Leverage Risk. Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source.
  • Liquidity Risk. Liquidity Risk is the risk that a Fund may encounter difficulties meeting its obligations in respect of financial liabilities that are settled by delivering cash or other financial assets, thereby compromising existing or remaining investors.
  • Operational Risk. Operational risks may subject the Fund to errors affecting transactions, valuation, accounting, and financial reporting, among other things.
  • Style Risk. Different investment styles typically go in and out of favour depending on market conditions and investor sentiment.
  • Model Risk. Model risk occurs when a financial model used in the portfolio management or valuation processes does not perform the tasks or capture the risks it was designed to. It is considered a subset of operational risk, as model risk mostly affects the portfolio that uses the model.

The SRI (Summary Risk Indicator) is an overall indicator of the product risk level. The scale varies from 1 (least risky) to 7 (most risky). Historical data may not be a reliable indication for the future. The rating is not guaranteed to remain unchanged and the categorisation may shift over time. The lowest rating does not mean a risk-free investment. Do not run any unnecessary risk. Read the Key Information Document.

Summary Risk Indicator (SRI) = 6 out of 7
SRI >= 4. The fund has a high risk indicator. The value of investments can go up as well as down.

Important information

For Professional Clients only and should not be distributed to or relied upon by Retail Clients.

Issued and approved by HSBC Global Asset Management (France)

This document is not by any means intended as a solicitation, nor a recommendation for the purchase or sale of any financial instrument in any jurisdiction in which such an offer is not lawful. The commentary and analysis presented in this document reflect the opinion of HSBC Asset Management on the markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Asset Management. Consequently, HSBC Asset Management will not be held responsible for any investment or disinvestment decision taken on the basis of the commentary and/or analysis in this document.

HSBC GIF Global Infrastructure Equity is a sub fund of HSBC Global Investment Funds, a Luxemburg domiciled SICAV.

Before subscription, investors should refer to Key Investor Document (KID) of the fund as well as its complete prospectus. For more detailed information on the risks associated with this fund, investors should refer to the complete prospectus of the fund.

The shares of HSBC Global Investment Funds have not been and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States Persons.

Article 8 SFDR =The product promotes environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices even if this is not its central point, or the central point of the investment process. More information on our ‘Responsible Investment’ Policy and ‘Implementation Procedures’ can be found on our website. The decision to invest in the promoted fund should take into account all the characteristics or objectives of the promoted fund as described in its prospectus.

Disclaimer

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Any views and opinions expressed are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. We accept no liability for any failure to meet such forecast, projection or target. This page is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Any views and opinions expressed are subject to change without notice. This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment.