Investing in New Zealand's future with Infratil

We love talking about the amazing companies that our members' KiwiSaver money is invested in. 

One of the standout performers in our New Zealand equities portfolio is Infratil, a leader in sustainable infrastructure investing.

Who are Infratil?

Established in New Zealand in 1994, Infratil was one of the world’s first listed infrastructure investment companies. Its early investments included renewable energy firm Trustpower and a shareholding in Wellington Airport. 

Today, Infratil has evolved to prioritise investment in projects that they believe have a high rate of expected growth, and can drive positive change in society and the environment.

Why we like Infratil

Diversified investments

Infratil has diversified its investments across various sectors, including healthcare, digital infrastructure, and renewable energy. Its wide array of assets includes One NZ, Manawa Energy (the generation arm of Trustpower, focused on renewable energy), Longroad Energy (a US-based renewable energy developer focused on wind and solar), and CDC (a data centre developer and owner). Our fund manager Mint Asset Management (Mint), has included Infratil as a core holding in our portfolio for a long time, thanks to this diversified mix of investments, a strong management team, and solid share price growth over the long-term.

Future-focused

Through Mint, we participated in Infratil's recent capital raise of NZ$1.15 billion to fund expansion into high-growth investment opportunities, including future projects for CDC and Longroad. CDC has experienced rapid growth driven by AI-related demand for data centre capacity and increased market share in Australia. Part of the capital will fund a new mega data centre campus in Sydney. The capital allocated to Longroad will support its massive pipeline of wind and solar development projects in the US.

What really excites us about Infratil, beyond its diverse investments, are the overarching global trends that drive its choices. These include the growing need for renewable energy, the digital shift requiring advancements in technology, and the increasing focus on sustainable development. 

These important trends are changing the world, and in our view, for the better. From an investment point of view, the infrastructure projects that bring these trends to life offer strong future growth potential. This is key to increasing the value of our members' KiwiSaver investment over the long-term.

Alignment to the United Nations Sustainable Development Goals

As sustainable investing is important to us, we also look at a variety of sustainability metrics on individual companies, asset classes, and the portfolios overall. 

When we run our Sustainable Platform analytics on Infratil, we're pleased to see that 86% of the company's revenue is contributing to the United Nations Sustainable Development Goals (SDGs). We prioritise four of these SDGs that are most aligned to the climate and environment. Of these four SDGs, 43% of Infratil's revenue is contributing to these goals, with the greatest contribution to SDG 7, Affordable and Clean Energy. 

We also note that Infratil outperforms the market index in three of these four SDGs. This means that Infratil not only aligns well with our sustainability criteria but also demonstrates it's contributing to key global sustainability targets.

Aurora's KiwiSaver Funds that have exposure to Infratil include:

• Aurora First Home Buyers Strategy
• Aurora Conservative Fund
• Aurora Balanced Strategy
• Aurora Growth Fund
• Aurora RetirementPlus Strategy

DISCLAIMER

^{This information is provided in a general nature only and should not be construed as or relied on as financial advice. This is not a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from a Financial Adviser before making any investment decisions.}

^{Past performance is not a reliable indicator of future performance. The value of your investment may go up and down.}