Investing

We are resolute in the consistency and conviction with which we apply our investment philosophy.
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Morrison is a long-term thematic investor. By securing unique insights about the market through our long-standing private and listed experiences, we aim to identify investment opportunities that will benefit from long-term trends linked to the evolving needs of society and economies. Our sector insights and targeted origination approach ensure we are perpetually creating the next vintage of market leading businesses in the most attractive subsectors.

Central to Morrison's approach is our commitment to building and retaining deep in-house sector expertise and operational capability. As infrastructure specialists, we believe this depth is important to recognising and managing changes in industry dynamics and asset-level complexities, which are increasingly prominent features within infrastructure markets and investments. Our operating expertise, networks and reputation provide us with a privileged position as a partner of choice.

As the world changes, so does our portfolio. Today, demand for infrastructure is rising in many developed economies, fuelled by long periods of public under-investment, the need to decarbonise, technological adoption, the demand for greater domestic infrastructure security in the face of heightened global security and supply risks, and the need to meet population growth and demographic changes.

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We have been actively originating and investing in global themes:

The methods by which we produce, transport, store and use energy are undergoing a dramatic, systemic change. This shift is being driven by governments and market initiatives that are aimed at addressing the energy trilemma of (i) energy security, or the domestic procurement of energy to promote national independence, (ii) affordability, or the desire to maintain or reduce consumer prices for energy services and (iii) decarbonisation, or the intent of governments and societies to replace high-carbon emitting resources with low-carbon assets. In response, technology is rapidly evolving, cost structures are transforming, and new energy systems are being created.

Ubiquitous, high-speed, reliable connectivity underpins almost every aspect of society, from the functioning of our industrial systems to how we socialise and communicate, entertain ourselves and ensure the health and safety of citizens. Despite the profound importance of digital systems and technology today, we are still at the dawn of the digital age. Underpinning the provision of this essential service exists a network of digital infrastructure assets that offers both long-term, defensive characteristics but also exposure to exponential growth.

A recent pandemic, rising protectionism and the risk of international conflict present challenges to globalisation. However, a powerful and enduring economic logic drives increasing interconnectedness in economies, companies, societies, and labour forces, and has yielded enormous growth and prosperity. The infrastructure assets that power movements of labour, goods, capital and ideas are the beneficiaries and enablers of this trend.

Rising life expectancies and declining fertility rates have delivered an ageing population in virtually all developed and most developing societies. The broad reaching effects of this long-term demographic shift include demand for assets such as healthcare, housing and community services, while they are shifting patterns of economic growth, savings and regulatory settings.

New technology, regulatory interventions, increased consumer awareness and resource constraints have removed the historical contradiction of ‘profit vs sustainability’. Industry is transitioning away from a high waste, high externality linear economy towards an economy focused on profitably minimising inputs and waste and maximising reuse and recycling. Key examples include the capture of embedded energy and scarce resources from waste streams, the mandated use of recycled inputs, the falling cost of waste processing and the transformation of value chains to eliminate wasteful practices.

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How we deliver value

In seeking enduring investments for the modern economy, Morrison applies a specialist approach to accessing and creating value, which has been tested and refined over multiple decades and economic cycles.

Morrison was early to recognise the importance of a proactive, targeted origination investment approach.

We identify and develop a deep understanding of the major social and economic trends that will drive demand for new forms of infrastructure.

We then allocate capital to the infrastructure businesses that are best placed to meet those demands. This gives us an early footprint and experience within a sector, driving proprietary deal flow and enabling us to be selective about where and when to deploy capital.

Over more than three decades we have developed significant capabilities across major infrastructure sectors including renewable energy, data infrastructure and connectivity, regulated utilities and transportation.

Having first built a substantial and high-quality portfolio in Australia and New Zealand, today we are global infrastructure specialists with significant assets under management across Europe, North America, and the Asia Pacific region. We have long-standing relationships in these markets and a strong, growing pipeline of opportunities.

Morrison continues to develop a diverse team of global leaders. Our investment professionals draw proprietary insights from across our portfolio and bring significant operational experience in targeted infrastructure sectors.

We operate as one team, ensuring the best skills are brought to each investment and situation. We value a variety of attributes, including patience and curiosity. Our clients benefit from the full scope of resources and experience able to be drawn from across our business.

From the unique insights illuminated by our global team of sector experts, we actively explore ways to achieve superior returns through private and listed markets. At the forefront of our minds is the need to be curious, analytical, and often, unconventional.

We harness our deep sector knowledge and long-standing relationships to generate high value opportunities. Our expertise ensures fast vetting and conviction in execution.

We prioritise relationships and long-lasting value.

We are active, value-focused owners, sharing our operational capabilities and deep sector expertise. We place value on our ability to manage through risk and complexity, unlock hidden value, and deliver follow-on investment opportunities. Our active management aims to drive superior outcomes for all stakeholders.

In a sector that often talks about investing in ‘assets’ or ‘projects’, we believe in building infrastructure businesses. We create value by being highly selective and targeted about the people we choose to operate and grow those businesses. We take care to establish capable, aligned, and incentivised executive teams for each of our investments, and assemble boards that understand how to support management teams in developing and delivering value-adding strategies.

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OUR GLOBAL INFRASTRUCTURE STRATEGIES

Morrison invests across the risk spectrum in private and public markets, providing diversified solutions for our investment partners. Our listed and unlisted capability gives us unique insights which informs our decision making across the infrastructure universe.

Morrison has a suite of global strategies providing access to high conviction infrastructure opportunities.

Value Add

Morrison pursues global, middle market infrastructure with a focus on significant capital appreciation potential, supported by major global growth trends – a well-honed approach from our first investment vehicle established in 1994. Morrison manages investments in infrastructure through significant platforms established across digital infrastructure, renewables and social infrastructure. Today, Infratil is one of the largest companies by market capitalisation on the New Zealand Stock Exchange and continues to be managed by Morrison. During Morrison's decades of management, Infratil has delivered strong returns to an increasingly diversified set of global retail and institutional investors.

Core / core plus

Morrison invests in middle market, OECD-focused infrastructure with core defensive characteristics that offer long-term value creation through growth. By targeting assets that play an enduring role in the modern global economy, our investments are well positioned to benefit from major global trends that are stimulating long-term growth and opportunity. Separately we apply our long heritage of specialist skills within a core portfolio of high-quality Australian and UK assets spanning airports, electricity transmission, water utilities, registry infrastructure and gas distribution infrastructure.

Listed securities

Morrison has managed listed infrastructure portfolios since 2006. We leverage our insights as owners and operators of real assets to identify high conviction listed infrastructure opportunities. For over a decade, we have been trusted by pension and sovereign wealth funds to identify and actively manage high conviction global listed infrastructure investments, and have expanded our reach to a broader range of investors globally.

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Investing

Infrastructure investment businesses managed by Morrison include:

Infratil

Infratil logo

Infratil was founded and publicly listed by Morrison in 1994. It invests in renewables, digital infrastructure, healthcare and airports, with operations in New Zealand, Australia, Europe, Asia and the United States. Infratil has delivered strong returns to an increasingly diversified set of global retail and institutional investors.

Utilities Trust Australia

UTA logo

Established in 1994, Utilities Trust of Australia is a global portfolio of high-quality assets, principally in the transport, electricity transmission and water sectors in Australia and the United Kingdom. Morrison became the manager of UTA in 2018.

Morrison Listed Investments

Morrison Listed Investments

Morrison has managed listed infrastructure portfolios since 2006. We leverage our insights as owners and operators of real assets to identify high conviction listed opportunities.

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Sustainable Investment

We invest wisely in ideas that matter.

In doing so, we create long-term value for our clients, the environment and society.

Find out more

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Disclaimer

This website does not constitute an offer to invest or the solicitation of an offer to invest or an offer to provide investment management services in any jurisdiction to any person. This website is not a recommendation to invest or financial product advice by the Morrison Group, or any of their respective directors, employees, advisors or shareholders. This website does not take into account any investor's objectives, financial situations or needs, and you should seek advice before making any investment.

For Japanese Investors - Form 20-2