Defining core infrastructure
What is core infrastructure?
Core infrastructure risk is characterized by downside protection, stability and predictability of underlying cash flows. Core attributes are measured by Stafford through a proprietary quantitative risk-factor-based methodology. This ensures that we do not rely on classifications by our managers but evaluate each underlying investment in a consistent and disciplined manner. Our portfolios have limited market risk and, instead, underlying revenues are strongly contracted, regulated, or availability-based.
In addition, we consider other attributes such as inflation protection and ESG alignment in our definition of core.
Risk profiles of infrastructure investments
Infra sub-sectors are often used as proxy for risk; this is not enough. Stafford's consistent, quantitative and granular analysis measures the risk profile of each investment, through a proprietary system developed over the last 10 years. The charts below illustrate the comparison of why risk can vary widely within similar sectors and revenue types.
View the chart below to find out more about the traditional view on risk versus our approach: