Harnessing the power of data

Hastings’ portfolio strategy is to invest in core infrastructure assets, diversifying across revenue risk and stage of maturity. Hastings create a unique revenue risk matrix for each of our funds, reflecting their specific investment strategies. However, there remains scope for investment across categories if compelling opportunities are available.

Hastings continues to increase the breadth and depth of its portfolio construction capabilities through the Quantitative Insight Programme, which informs portfolio construction priorities. We will continue to pursue acquisitions provided they benefit the portfolio, where the focus remains on ensuring low volatility and low correlation to traditional asset classes over the long term.

A good example can be found on the right, where we highlight the revenue and sector geographic diversification of one of our house fund portfolios as at 30 June 2016.

QUANTITATIVE INSIGHT PROGRAMME

Hastings is focused on ensuring that our infrastructure portfolios continue to provide low volatility, have low correlation to traditional asset classes, and provide inflation protection for long-term investors.

To ensure this, the Quantitative Insight Programme, or QIP, utilises Hastings’ extensive proprietary database of infrastructure performance and professional insights to empower portfolio managers to make more informed portfolio management decisions.

Hastings portfolio managers and investors benefit through: Continuous strengthening of understanding and quantification of relationships between macroeconomic forces and infrastructure revenues and risk; Sustained leadership status in the development and evolution of portfolio construction technology (revenue-risk framework) to achieve investor expectations; Enhanced critical assessment of investment/divestment opportunities from both historical and forecast perspective.

Understanding QIP and its ability to provide Hastings and its investors with a structural and sustainable advantage requires appreciating its three key foundations: Unparralled historical data; Analysis; Decision making.

Due to the lack of information sharing and/or transparency of data for unlisted infrastructure equity markets, participants with greater information are able to form superior views of risk and return as well as behavior and expectations through economic cycles. Used properly, data can provide a manager with a strong market advantage.
Hastings recognises the potential advantage data can provide to an infrastructure equity manager. In response, we have collected all available historical data over the past 20 years of managing infrastructure assets onto a single proprietary data platform.

Due to the longevity of Hastings operations, QIP is likely to be the largest and most comprehensive database of infrastructure equity and cashflow performance in the market today. Through proprietary information, we believe we have a sustainable structural information advantage in the unlisted infrastructure equity market place.

Sponsored by Hastings Funds Management