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Energy transition: matching liabilities and capturing the equity premium - Natixis Investment Managers

Energy transition infrastructure can match long-term liabilities, generate high yields and lift pension schemes’ sustainability profiles.

Posted on Feb 22, 2022

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... An allocation to infrastructure equity can lift portfolio yield by reducing volatility compared to listed equity, better matching assets to liabilities and improving a scheme’s sustainability profile.

Energy transition infrastructure is little different to traditional infrastructure assets such as bridges and hospitals: income from well-structured energy transition infrastructure assets is predictable and can match liability cashflows.

Sponsors, too, take a positive view on the inclusion of energy transition assets in their DB pension scheme allocations. This desire means trustees and sponsors are often driving the shift in allocations, rather than their local advisors.

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