Praemium has added ClearBridge Investments’ Developed Markets Infrastructure Income Model Portfolio to the Praemium Separately Managed Accounts (SMA) menu, providing greater access to the strategy.
The Model Portfolio, designed to produce attractive and stable returns by investing in an actively managed portfolio of infrastructure securities in developed markets, includes a range of infrastructure sub-sectors such as gas, electricity and water utilities, toll roads, airports, rail and communications infrastructure.
Commenting on Praemium’s latest addition, head of investment managers and governance, Damian Cilmi said having access to portfolios that offer the opportunity for diversification and some protection from inflation is becoming increasingly important for investors.
“We’re pleased that Praemium is one of the first SMAs to offer advisers and their clients access to ClearBridge Investment’s infrastructure portfolio,” Mr Cilmi said.
According to portfolio manager Charles Hamieh, infrastructure is at the centre of several long-term thematics, including COVID recovery stimulus programs, decarbonisation and the transition to net zero, transport efficiency and digital connectivity.
“For a lot of infrastructure assets, inflation is a pass-through. If you look at toll road or airport operators, they will increase tariffs or tolls with inflation. If you look at a utility, there is either a direct or indirect pass-through of inflation in its revenue model. Inflation is a positive in that sense,” said Mr Hamieh.
“There will be increases at the cost line but the net cashflow position is neutral to positive.”
Top holdings in the portfolio include British multinational gas and electricity utility National Grid, US energy company Public Service Enterprise Group, Spanish electric utility Iberdrola, Scottish energy company SSE plc and toll road company Atlas Arteria.
