Our $22.3 billion global infrastructure & renewable resources program invests in businesses that provide essential services and are necessary for growth and development of economies. Infrastructure businesses tend to be large-scale and asset intensive, and typically generate stable, inflation-linked cashflows. These favourable risk and return characteristics insulate our investments from market cyclicity and provide an attractive match to our clients’ inflation-sensitive liabilities.
In 2023, we opened our London, U.K. office for our infrastructure & renewable resources team. The office, our first outside North America, is an important evolution of BCI and the infrastructure & renewable resources strategy and provides a solid foundation to continue to originate and manage investments in the U.K. and European context.
Combined Pension Plan Infrastructure & Renewable Resources Program Performance1 (%)
2Assets in the infrastructure & renewable resources program are valued annually at December 31. Returns for the program are calculated on an internal rate of return basis and benchmarks are presented on a time-weighted rate of return basis.
Global Distribution of Infrastructure Program (%)
2Values do not add up to 100 due to (1.2) per cent allocated to Other.
3Europe includes the United Kingdom.
OUR INFRASTRUCTURE & RENEWABLE RESOURCES PROGRAM
Our program comprises a portfolio of regulated utilities in the electricity, gas, and water & wastewater sectors; transportation, including roads, rail, bridges and port terminals; telecommunications; as well as investments in timberlands and agri-businesses. It is well-diversified by geographic regions and sectors, with a typical investment horizon that can span over a 20-year holding period.
We focus on meaningful equity positions that allow us to adopt an active governance approach. This approach to governance enables the team to actively manage the assets to increase long-term value and align with the interests of BCI, the portfolio companies, and our clients.