Investor Education: Investing in Infrastructure and Renewable Resource Projects
PODCAST May 21, 2019
In today’s episode, host Mark Therriault is joined by Ben Jang — Nicola Wealth’s Portfolio Manager who manages their infrastructure and renewable resources partnership.
Today, Mark and Ben are diving deep into the topic of infrastructure and renewable resources. They discuss what infrastructure is, what the infrastructure space actually looks like, how infrastructure works, the risks associated with investing in infrastructure as an asset class, how it fits into a portfolio, and what Nicola Wealth looks for in infrastructure or renewable resource projects as a solid investment. On top of that, Ben also gives some really good examples of infrastructure products in Canada today and how he sees infrastructure as an asset class developing in the future.
[:29] About today’s episode.
[:56] What exactly is infrastructure as an investment vehicle or an asset class?
[3:02] In terms of investing in infrastructure, is this something that has been around long-term as an asset class? Or is this new?
[3:56] Some of the struggles that occur with underinvesting in infrastructure projects.
[4:49] From the government’s perspective, what’s the benefit of them doing a private infrastructure project?
[6:15] What companies are investing in infrastructure projects?
[6:55] When did the Sea-to-Sky Highway become a private infrastructure project? And how do they get compensated for managing it?
[9:50] Are there lots of varying ranges in terms of risk for infrastructure as an asset class?
[11:11] Other than roads or hospitals, what other types of assets would be considered infrastructure investment products?
[12:33] Where does infrastructure as an asset class fit in a portfolio? And can you expect cash flow from this asset? What are the terms from an investor standpoint?
[13:48] Can infrastructure assets go up and down in value?
[15:18] Ben explains the infrastructure assets Nicola Wealth looks at (which fall into three categories: regulated, contracted, and GDP-related.)
[17:16] Of the three asset infrastructure categories, does contractual have the highest potential of return?
[19:22] Are there a lot of deals in infrastructure as an asset class?
[20:26] Does Ben think that infrastructure as an asset class will grow significantly, going forward?
[21:21] Are all contracts in infrastructure considered long-term contracts?
[22:16] Does Ben think that infrastructure as an asset class will grow beyond what it is right now?
Mentioned in this Episode:
Ben joined Nicola Wealth in September 2012 with extensive experience working for several multi-billion dollar investment management firms focusing on global equity, GTAA and market neutral funds. Most recently, he was on the institutional portfolio management team for a Vancouver-based firm, and was responsible for quantitative strategies and optimization of portfolios.
For his full bio, visit: NicolaWealth.com/Our-Team/Ben-Jang
About the Host — Mark Therriault
Mark is the Financial Advisor and partner of Nicola Wealth — and host of The Wealth Exchange podcast.
As a member of the Nicola Wealth Planning Team since 2006, Mark has become his clients’ trusted advisor. He prides himself on providing an exceptional experience to his clients while quarterbacking their financial affairs.
Mark earned his Bachelor’s degree in Economics with a minor in Finance from the University of Calgary. He went on to secure his CFP designation and also completed the CIM, CSC, the B.C. Life Insurance License.
For More Information on this Week’s Episode, Visit:
This presentation contains the current opinions of the presenter and such opinions are subject to change without notice. This material is distributed for informational purposes only and is not intended to provide legal, accounting, tax or specific investment advice. Please speak to your NWM Advisor regarding your unique situation. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. NWM fund returns are quoted net of fund-level expenses. Past performance is not indicative of future results. All investments contain risk and may gain or lose value. Projected returns are estimates only. Returns are not guaranteed. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities’ commissions in Canada.