SOLID FUNDAMENTALS, FAVORABLE OUTLOOK
Equity investments in the infrastructure sector are at a turning point, supported by stable cash flows and a strong increase in investments that provides visibility on their growth trajectory. The infrastructure world can, in fact, rely on several drivers that currently support its development:
- The growing application of AI tools, which is generating an unprecedented increase in electricity demand and a strong acceleration in investments in grid connections
- The need to develop renewables and storage systems in a Europe that requires greater energy self-sufficiency
- Structural tailwinds such as decarbonization and the need for protection against climate change
- The tendency of many governments to adopt policies that stimulate economic growth
- Protection from volatility and inflation offered by highly regulated subsectors such as utilities
THE KEY TO INVESTING IN THE INFRASTRUCTURE OF THE FUTURE
KIS Kairos Equity Yield is a flexible equity fund that invests in mid and large-cap companies, mostly European, across four strategic subsectors within the infrastructure universe: utilities, transportation, telecommunications, and real estate.
The fund aims to achieve capital appreciation over the medium to long term by investing mainly in European issuers, where it benefits from a competitive advantage built on relationships developed over the past twenty years. It represents an investment solution positioned between equities, due to its potential returns, and bonds, thanks to the visibility of the cash flows of the companies it invests in, which in recent years have added a growth component linked to investments to their dividend income profile.
SECTORS IN FOCUS
The fund mainly invests in:
- UTILITIES: transmission and distribution networks, integrated utilities, and renewables
- TRANSPORTATION: infrastructure such as airports, highways, railways, and ports
- TELECOMMUNICATIONS: infrastructure such as towers and broadband
- REAL ESTATE: operators, products, and services related to the real estate market
The fund combines bottom-up fundamental analysis, mainly based on proprietary research, with top-down macroeconomic analysis, thereby also identifying sector trends.
The portfolio includes a core long component of approximately 30–40 stocks, with positions often held over a long period. This is complemented by short positions, typically less concentrated and more opportunistic, built both on indices for hedging purposes and on derivatives on individual securities for investment purposes, seeking market catalysts such as regulatory or management changes.
ACTIVE MANAGEMENT AND EXPERIENCE
In a rapidly changing market environment, the role and experience of the active manager remain crucial. On one hand, dialogue with portfolio companies is continuously supported by intensive stewardship activities, carried out through careful monitoring of corporate performance and engagement on business issues and ESG factors. On the other hand, there is a strong need for the ability to interpret non-numerical data.
KIS KEY stands out as an advanced investment solution, capable of meeting the search for returns in a deeply evolving market context, where the investable universe is undergoing a structural transformation.
According to the SFDR Regulation on ESG funds, the Fund is classified as art. 8. Further information on sustainability aspects is available at the link https://www.kairospartners.com/esg-en/?lang=en and in the prospectus.
KIS KEY is aimed at investors with a medium-to-high risk tolerance, who can commit their capital for a period of 3 to 5 years and seek to meet defined investment objectives. They should have experience or an understanding of so-called risk capital products and be willing to tolerate significant capital losses (should they occur). Investment involves a risk component, and as a result, the originally invested capital may not be fully or partially recovered. Past performance is not indicative of future results. KIS KEY’s synthetic risk indicator is classified at level 4 out of 7. Comprehensive information regarding risks is available in the Prospectus and Key Information Document (KID).
THE MANAGEMENT TEAM
The management of KIS KEY is entrusted to Oriana Bastianelli and a team with strong specialization in analyzing the relevant sectors and regulatory dynamics, which require experience and historical background.
The management team seeks the best investment opportunities based on deep knowledge of companies, built through a well-developed network of relationships with managers and shareholders and of the reference market, including regulatory dynamics.
We are signatories of the PRI, Principles for Responsible Investment, the United Nations initiative which contributes to the development of an increasingly sustainable global financial system.
We are signatories of the Carbond Disclosure Project (CDP), the international non-profit organization that intends to contribute to the construction of a sustainable economy for people and the planet.
Disclaimer
This is a marketing communication for advertising purposes. Please refer to the Prospectus and the Key Information Document (KID) before making any final investment decision. These documents are available in Italian on the website www.kairospartners.com and at the registered office of Kairos Partners SGR S.p.A. (“Kairos”) and placement agents, also in a paper copy . A summary of Investors rights is available in both Italian and English at https://www.kairospartners.com/sintesi-dei-diritti-degli-investitori-it-en/. Past performance is shown net of expenses borne by the Fund and before taxes. Past performance does not predict future returns. The investment concerns the acquisition of shares in the Fund and not a given underlying asset which remains the property of the Fund. The investment implies a risk component, consequently, some or all of the originally invested capital may not be recovered. Exchange rates movements may affect the value of the investment and costs when expressed in a currency other than the investor’s reference currency. Information on the features of the Fund and general sustainability aspects (ESG) can be found at www.kairospartners.com/esg/, in accordance with Regulation (EU) 2019/2088. If the Fund is marketed in countries other than the country of origin, Kairos has the right to terminate the marketing agreements based on the withdrawal of notification process provided for by Directive 2009/65/EC.
The information and opinions provided herein do not constitute a public offer, nor a personalised recommendation. They do not represent a contract and are not prepared in accordance with a legislative provision, nor are they sufficient to make an investment decision and are not intended for persons residing in the United States of America or other countries in which the Fund is not authorized for marketing. The information and data are deemed correct, complete and accurate. However, Kairos does not provide any express or implied representation or warranty as to the accuracy, comprehensiveness or fairness of the data and information and, when they have been drafted by or derive from third parties, assumes no liability for the accuracy, comprehensiveness, fairness or adequacy of such data and information, although the sources used are considered to be reliable. When not specified otherwise, the data, information and opinions are to be deemed updated at the report date and may be subject to changes with no prior notice or subsequent communication. Any citations, summaries or reproductions of the information, data or opinions provided herein by Kairos must not alter the original meaning, nor can they be used for commercial purposes and must cite the source (Kairos Partners SGR S.p.A.) and the website www.kairospartners.com. Citation, reproduction and, in any case, use of the data and information of third parties it must occur, when allowed, in full compliance with the rights of the relative owners.
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