Columbia Threadneedle European Sustainable Infrastructure Fund

Europe offers a compelling infrastructure investment landscape with a diverse, well established and supportive legislative environment for private investment. Yet investment needs far outweigh private capital flows. This presents an attractive opportunity for investors to generate stable, inflation-protected yields from high-quality ‘best-of-class’ infrastructure assets.
At Columbia Threadneedle, we have substantial experience in managing real assets via our UK and US real estate businesses. Our infrastructure strategy complements our offering and leverages our collaborative approach across our global investment research.
When investing in infrastructure, we believe it is important to take a long-term view, to build projects that are sustainable and ecologically responsible, and to be prepared to continually make improvements. An open-ended/evergreen structure that allows for dynamic portfolio construction and the flexible deployment of capital is therefore key.
Sustainability is particularly close to our hearts. By investing in well-governed companies that are better positioned to manage the financial and non-financial risks and challenges inherent in business, we can capture opportunities that deliver measurable positive outcomes and better financial performance.

Objective

The fund aims to deliver consistent total returns comprising recurrent inflation-linked yield and medium to long-term capital growth, across economic cycles, by constructing a diversified portfolio of European, unlisted infrastructure equity investments.

PDF

Fund profile

Sources of added value

  1. An open-ended/evergreen strategy dedicated to investing in European, core mid-market infrastructure equities:The perpetual investment period enables us to acquire and actively manage infrastructure assets over the long term, driving value and unlocking growth potential by investing and adapting in a changing environment. We see significant opportunity in the European mid-market space (under €300million), with a diversified deal flow resulting in less competitive pressures for assets across all infrastructure sectors.
  2. Proprietary investment and dynamic portfolio construction approach: We have developed a framework (the ‘OMS’) which integrates Columbia Threadneedle’s infrastructure expertise with its global research and specialist Responsible Investment capabilities. Our origination strategy is based on the principle that each investment needs to be additive to the portfolio from a risk and return, as well as from a sustainability perspective. This allows us to build a balanced, robust portfolio with controlled volatility through economic cycles and a critical focus on long-term growth.
  3. Sustainability: It is integrated at all stages of the investment process. We analyse a prospective asset’s compatibility with the strategy’s objectives and values and create an outcome-focused sustainability plan, which is integrated in the long-term business plan and reflected in the acquisition price. Post-acquisition, we engage actively with all stakeholders to ensure alignment and delivery of sustainable outcomes.

The ‘OMS’ investment and portfolio construction framework

The ‘OMS’ investment and portfolio construction framework

Key Facts

Fund structure
Open-ended1
Performance target2
Net IRR of 8-10% p.a.
Net yield of 5-6% p.a.
Target investment universe
High-quality and sustainable infrastructure assets in Europe (primarily in European OECD countries) with a focus on utilities, transportation, social infrastructure, renewable energy and telecommunications.

1 Providing liquidity via redemption mechanism.
2 Please note that the performance targets may not be attained.

Events

Past speaking engagements:

Address

Women In Infrastructure (roundtable)

Date: 1 February 2019
Location: London, England
Organiser: Infrastructure Investor

Address

Infrastructure Investor 2019 Global Summit

Date: 19-20 March 2019
Location: Berlin, Germany
Organiser: Infrastructure Investor

Address

Annual World Pensions Forum

Date: 24 May 2019
Location: Brussels, Belgium
Organiser: World Pensions Council, The International Association of Pensions & Social Security Funds

Literature

No data was found

Insights

22 February 2019

Ben Kelly

Senior Thematic Analyst

How airports are flying high: a social perspective

Holding airport bonds in our social strategies often raises questions. But aviation brings huge social and economic benefits, and is making great environmental strides.
Read time - 5 min
2 January 2019

Ingrid Edmund

Senior Portfolio Manager

A new age of infrastructure

Europe’s infrastructure needs renewal, but in ways that are sustainable over the long term. An ever-changing landscape means that infrastructure investors must weigh up opportunities and challenges carefully.
Read time - 5 min
20 December 2018

Iain Richards

Head Of Responsible Investment

Responsible Investment has become increasingly important for many asset owners, so what does 2019 hold?

At a time when demand for ESG integration is growing and confidence in the investment impacts of traditional ESG approaches remains high, data science offers the additional prospect of solving for the effective integration of meaningful non-financial analysis in investment, at scale and with global reach.
Read time - 5 min
8 November 2018

Ben Kelly

Senior Thematic Analyst

Air pollution: Sustainable development and investment opportunity

Air pollution is deleterious to human and ecosystem health, and there is a growing and important need to tackle it across the globe. But, via the adoption of a number of UN Sustainable Development Goals, there are a number of solutions which investors can support.
Read time - 5 min
22 October 2018

Heiko Schupp

Global Head Of Infrastructure Investments

Disruptive technologies challenge traditional infrastructure approach

Traditional infrastructure investments are being challenged by the pace of innovation, and technology and disruption will likely create opportunities across all core infrastructure asset types. So a highly flexible approach is required to respond to this.
Read time - 5 min

Infrastructure Investments Team

Ben Kelly
Senior Thematic Analyst
Heiko Schupp
Global Head Of Infrastructure Investments
Antonio Botija
Head Of Origination & Investments
Ash Kelso
Head Of Asset Management
Ingrid Edmund
Senior Portfolio Manager
Iain Richards
Head Of Responsible Investment
Important information: For use by institutional clients and consultants only (not to be passed on to any third party). The Columbia Threadneedle European Sustainable Infrastructure Fund (the “Fund”) is not subject to the regulatory oversight of the Commission de Surveillance du Secteur Financier (the “CSSF”), the Luxembourg supervisory authority of the financial sector. The Fund is expected to consist of at least the following vehicles: (i) Columbia Threadneedle ESIF Master Vehicle SCSp, a Luxembourg special limited partnership (société en commandite spéciale) (the “Master Fund”); and (ii) certain feeder funds, each of which is expected to be established as a Luxembourg special limited partnership (société en commandite spéciale) (each a “Feeder Fund” and together, the “Feeder Funds”). Only limited partnership interests in the Feeder Fund(s) (“Interests”) are being marketed to Prospective Investors. This Fund is an alternative investment fund for the purpose of the European Union Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (the “AIFMD”). Threadneedle Portfolio Services Limited is the alternative investment fund manager (“AIFM”) of the Fund. The Fund may only be marketed to prospective investors which are domiciled or have a registered office in the jurisdictions in respect of which AIFMD marketing rights have been exercised by the AIFM under Article 31 or Article 32 of AIFMD and in such cases only to persons which are Professional Investors. This document is not intended for, should not be relied on by and should not be construed as an offer to any other person. This document and its contents are confidential and proprietary. This document is not investment, legal, tax, or accounting advice. Investors should consult with their own professional advisors for advice on any investment, legal, tax, or accounting issues relating an investment with Columbia Threadneedle Investments. The analysis included in this document has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed. Issued by Threadneedle Portfolio Services Limited.

Registered in England and Wales, Registered No. 00285988, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
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