TRUE Infrastructure Management (‘TRUE’ or the ‘Manager’) are pleased to announce that the TRUE Infrastructure Fund (‘Fund’) has been given 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 8.37% (after fees) compared to 4.76% for the internal target return benchmark and 7.20% p.a. for the peer average. This is an outperformance of 3.61% 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 delighted to have earned an investment grade rating after less than a year with funds under management. TRUE exists to provide high-net-worth investors exposure to unlisted portfolios of high-quality infrastructure assets, exhibiting equity-like returns, with less volatility and risk. The fact that our underlying portfolios are weighted towards renewable energy assets, also offers investors the opportunity to directly benefit from the huge shift towards sustainable energy.
Whilst our core objectives are to generate stable and growing cash returns and longer-term capital growth for investors, we believe that adopting key ESG principles also has the potential to enhance the longer-term return profile of the portfolios and the underlying assets, as ESG principles are increasingly ascribed an explicit value by investors.”
