EXPECTED RETURN
DEBT
Investment Grade
to Sub-Investment Grade
SUPER-CORE
Fully contracted, amortizing assets
RISK (VOLATILITY)
CORE
Operating assets with highly visible future cash flows
CORE-PLUS
Operating assets with growth potential from expansion for acquisition
Key assets offer low operational risk in transparent regulatory environments. They typically possess:
Monopoly position: Holding a regional monopoly, these assets wield pricing power and face limited competition in delivering essential services.
Demonstrable demand: With a steady, essential service demand, these assets provide investors with a predictable income source over the long term.
VALUE-ADD
Operating or pre-completion assets with scope for change in operations or financing
OPPORTUNISTIC
Speculative capital appreciation strategies, typically with non-cash flowing assets
Social housing
University campus utilities
Short line rail
Owner/operator
airports
"Pick-and-shovel" plays in digital sector
Renewables development
EXPOSURES AVAILABLE VIA UNLISTED
CORE-PLUS
VALUE-ADD
These are assets with moderate-to-high risk, undergoing upgrades like capacity expansion, operational changes, or alterations in use to boost market value.
Examples include a toll road accommodating more vehicles, a power plant shifting to cleaner fuel, a port modernizing for larger ships, or a data centre expanding storage and processing power, whether on undeveloped (greenfield) or previously developed (brownfield) land.
These are assets with moderate-to-high risk, undergoing upgrades like capacity expansion, operational changes, or alterations in use to boost market value. Examples include a toll road accommodating more vehicles, a power plant shifting to cleaner fuel, a port modernizing for larger ships, or a data centre expanding storage and processing power, whether on undeveloped (greenfield) or previously developed (brownfield) land.
OPPORTUNISTIC
CORE
Union Pacific
American Tower
CN Railway
Enbridge
Canadian Pacific KC
Vinci SA
CSX
Norfolk Southern
The Williams Companies
Crown Castle Intl.
Cherniere Energy
Kinder Morgan Inc.
NextEra Energy
Southern Company
Duke Energy National
Grid PLC
Sempra Energy
Exelon Corporation
American Electric
Power Company
Constellation Energy
SUPER-CORE
Source: Russell Investments, Bloomberg As of April 16, 2024