Investment Approach
Our investment approach has remained consistent over the last 15 years:
Select the right sectors
Our investment decisions are supported by beliefs in long term megatrends that bridge business cycles. Examples of megatrends underlying our current portfolio of assets across mandates include rising personal mobility, increasing urbanisation, and the rise of environmental consciousness. Our sectors of expertise include:
Apply deep sector expertise and invest in local relationships
In addition to financial and transactional expertise, Morrison & Co employs sector experts with industry knowledge and sector experience. We recognise that infrastructure assets require intensive stakeholder management and are subject to regulatory oversight, and we therefore actively invest in managing these relationships. Deep sector experience and attention to key stakeholders are key enablers of relative outperformance.
Develop exclusive investment options
Morrison & Co avoids high profile auctions by investing significant resource in development/origination efforts and also by pushing its existing businesses to create internal investment opportunities. We prefer to have investment opportunities dictated on our terms and timing. We rely on our track record to position us as owner/operators of choice amongst potential sellers and their stakeholders.
UN Principles for Responsible Investment
Morrison & Co believes that environmental, social and governance (ESG) issues play a vital role in NZ and Australia, and further afield.
In March 2010, we became a signatory to the UN Principles for Responsible Investment. We are committed to the implementation of the Principles* in our operations. ESG analysis is an integral part of due diligence before Morrison & Co recommends an investment. Following investment, Morrison & Co will engage with the investee companies to implement ESG practices.
While some of our mandates are global in nature we have avoided countries where political risk and corruption represent material risk. As a guide we use the OECD Consensus Country Classifications. Currently, all our investments, without, exception, are in the highest quality category.
We believe that ESG issues will positively affect the performance of our investment portfolios in the long term.
Investee or managed companies have achievements on ESG issues:
- A majority of the directors on the Board of Infratil are independent from the Manager;
- Trustpower has a focus on renewable energy;
- NZ Bus is reducing NZ’s carbon footprint by promoting the use of public transport;
- Greenstone Energy is providing NZ with high quality fuel meeting the strictest environmental standards.
*The six Principles are:
We will:
incorporate ESG issues into investment analysis and decision-making processes;
be active owners and incorporate ESG issues into our ownership policies and practices;
will seek appropriate disclosure on ESG issues by the entities in which we invest;
will promote acceptance and implementation of the principles within the investment industry;
will work together to enhance our effectiveness in implementing the Principles;
will each report on our activities and progress towards implementing the Principles.