About

Investment Strategy

Long-term view

Investments are long-term. Infratil invests in businesses which have the capacity to invest in their facilities and services. Long-term “excess” returns can only be derived from the compounding effect of reinvesting in growth.

Sectors offering value

Infratil chooses sectors which offer patient investors exceptional returns. Each of Infratil’s businesses has the prospect of a "step up" in value.

• Renewable energy. The global increase in the cost of energy plus the pricing of carbon is producing exceptional returns.

• Australian energy. The reform of the Australian energy market and renewable generation are both trends which are opening opportunities.

• Airports. The huge growth in the world’s population of people financially able to fly (both because of reducing air travel costs and increasing incomes) is increasing airport throughput.

• Public transport. It is becoming a truism that private cars will not provide urban mobility. The solution to growing city populations is not more vehicles on the road, it is more people in each vehicle.

• Retirement Living and Aged Care.   Retirement villages provide real benefits to an ageing population addressing concerns such as isolation, mobility and cost of living.

Invest with expertise

Infratil will invest where it has expertise, or can partner with expertise, and where it can influence the strategic and operational directions of the companies it invests in. Infratil's management has world class expertise in respect of airports, energy and public transport.

Community focus

Infratil prefers to invest alongside community interests (City Councils and Community Trusts). Infratil's co-investor in Wellington Airport is the Wellington City Council. In Trustpower it is the Tauranga Energy Consumer Trust. Infratil recognises that infrastructure is part of the community’s social and economic capital. For a long term investor only outcomes which benefit those communities will also benefit capital providers.

Infratil’s businesses are operated with the customer as the priority. Whether the service is retail energy, and airport, or a bus ride home, it can be made to suit user needs. Historically infrastructure management made cost minimisation the single priority. It is necessary to be efficient and low cost, but that is not sufficient. The service must also meet user expectations and needs.