Our Objectives
SIMCo’s objective is to offer our investors a better-than-expected return consistent with a prudently managed portfolio. The investment opportunities we seek are where we have strong experience and a competitive advantage.
We look for excess investment returns for our investors by capitalising on opportunities that arise because of disequilibria from cyclical or structural changes in the price of risk, assessment of cash flows or regulation.
These market opportunities may result from actual or expected changes in market factors such as systemic risk, volatility, interest rates and inflation or they may be the result of externalities such as disintermediation, taxes, regulation and government intervention.
How we find excess returns for our investors
We seek alpha or excess returns by finding opportunities we feel are overlooked or mispriced by the market. This includes looking at jurisdictions or sub-sectors within broader sectors that have been overly penalised, looking at individual project cash flows we feel are mispriced and taking advantage of illiquidity premiums. In traditional infrastructure, this may include demand-based projects where revenue growth is undervalued, construction that is mispriced or through more technical means such as refinancings we feel will happen faster than the market expects. In corporate-like infrastructure, we look for mispriced business risk or where the rating agencies have overly penalised a credit.
Strong sector and sub-sector experience
We focus on investment opportunities where we have deep sector knowledge and a clear competitive advantage. Our directors bring extensive experience across a wide range of sectors, including transportation, energy, utilities, power, renewables, pipelines, telecommunications, toll roads, rolling stock, ports, shipping, airports and aircrafts. This expertise spans multiple jurisdictions, including North America, the UK, Western Europe, Australia and New Zealand, providing a global perspective on infrastructure markets.
Our practical, hands-on experience enables SIMCo to source, analyse and structure investments effectively, ensuring each portfolio is managed to maximise performance. Where required, we can also work out transactions efficiently, leveraging our sector knowledge to mitigate risks and enhance returns. This combination of breadth and depth of experience allows us to identify high-quality opportunities, deliver disciplined investment decisions, and maintain a strong track record of success for our investors.
Solid track record based on experience and judgment
SIMCo seeks to deliver competitive investment returns through investment decisions based on a solid track record of managing investments and credit risk through many economic and market cycles. Although we use proprietary models in our research and analysis, final investment decisions and advice are always the result of judgment gained through years of experience.