Approach
Our approach to investing
We take a robust approach to investing and carefully examine the performance and risks of companies we invest in.
Investors usually assess companies on their returns. To understand if returns are good and are repeatable you need to understand the risks a company takes to deliver these returns.
Information for our shareholders, bondholders, and anyone who's thinking of investing in Infratil
We actively manage our investments and risks
We aim to have good risk-adjusted returns — returns that are good when risks are considered.
These three things are worth noting about our approach to risk
Our assets are diversified by industry and geography
Bad things happen, but it’s hard to imagine they would happen to all our assets at once given our diversification.
Events like a global financial crisis, a pandemic, climate change intensification and geopolitical tensions have happened in the past decade. But they have materially affected only small parts of our portfolio.
Our approach to investment is to provide exposure to growth, driven by macroeconomic and industry tailwinds, investing with these types of risks in mind.
Our risk is manageable if our investments fall in value
The businesses we invest in tend to be lower risk, but not all investments work out. We understand the worst-case scenario of each business and are confident we can manage those scenarios.
Bonds are an important part of our funding
We borrow most of our money in New Zealand and over the medium-term. This reduces the need to re-borrow each year. We have been issuing bonds since 1999, and the New Zealand domestic market has been a reliable and efficient source of funding. We also have strong funding lines available from a number of banks and we have well established banking relationships.
We target borrowing funding for 30% of our assets.