TRUE Infrastructure Management (‘TRUE’ or the ‘Manager’) are pleased to announce that the TRUE Infrastructure Fund (‘Fund’) has been reaffirmed an investment grade rating by independent research house SQM Research, awarding the Fund a 3¾ star ‘Favourable’ score.
Key strengths that SQM Research highlights in relation to TRUE and the Fund include, the experienced investment team; the defensive nature of the underlying portfolios, largely comprising assets in the core and super-core segments, with the lowest risk/return profiles; TRUE’s robust research process; and the concentrated nature of the investment portfolio, facilitating deeper knowledge of the underlying managers and companies.
The SQM Research report highlighted that since the Funds inception in November 2020, the Fund has returned 10.16% (after fees)compared to 8.99% for the internal target return benchmark. This is an outperformance of 1.17% in relation to the target annual return objective for the Fund.
The Funds underlying portfolios comprise assets across four infrastructure sub-sectors, including renewable energy assets with heavily contracted energy offtake agreements, which produce stable and growing long-term cashflows. This enhances the likelihood of alpha generation despite fluctuations in the returns of other asset classes. The heavily contracted underlying assets also mitigate key risks associated with market volatility and inflation.
Commenting on the rating, Peter McGregor, CEO of TRUE Infrastructure, said:
“We are extremely pleased that SQM has reaffirmed TRUE Infrastructure Fund’s 3¾ star ‘Favourable’ rating. We see the confirmation of this rating, particularly in such a volatile macroeconomic climate, as a validation of TRUE Infrastructure’s bias towards core and super-core infrastructure, with a particular focus on renewable energy assets. The relatively low correlation of our portfolio with GDP and global markets, together with a high degree of inflation protection, has served our investors well since the establishment of the Fund two years ago.
Looking forward, we expect the portfolio to continue to perform in line with our guidance of generate a total annualised return of 8% or more, with relatively low volatility. We are also pleased to advise that we expect to have access to a healthy pipeline of new opportunities to continue to grow the Fund over the coming year.”
