Infra funds in harmony with governmental ESG policies

Strong governmental support for ESG – particularly the environmental aspects – is providing a positive tailwind for infrastructure investment according to Time Investments’ fund manager Christopher Cox.

He said that while there is growing interest from investors, who are demanding more of investment houses in terms of ESG, governments’ spending packages are also aimed at rebuilding economies in a more sustainable and resilient way.

“When you read the detail of what they really mean by that, they’re pushing the decarbonisation of economies and essentially trying to make us more resilient from an environmental point of view in the future,” he told Real Asset Media’s Richard Betts.

“A lot of those spending packages are being directed towards areas such as wind, solar or energy efficiency,” he added.

“So one of the big themes within a fund like ours – when you look it’s quite a meaningful part of the portfolio – is playing to that theme,” he said.

He added that this is the right thing to do, “because there is that real structural positive tailwind to the sector, whereby you know the government’s spending a lot more money on this space already and will continue to incentivise a huge amount more money from the private sector. In turn, that clearly helps support valuations, will create new investment opportunities and it might even create new asset classes to invest into as well.”

Click on the video to watch the full interview or listen to the podcast below.