Since its inception in 1994, the listed infrastructure investment entity Infratil has aimed to provide percentage returns to investors between 10% and 20%.
“Thank God it worked,” former chief executive Marko Bogoievski told Markets with Madison.
The company’s average annual return to shareholders over 30 years was 18.7% after tax, according to analysis by the company and NZX.
“It is a remarkable record,” Rob Morrison, brother of Infratil founder the late Lloyd Morrison said.
Rob is the chairman of Morrison, the investment firm that manages Infratil for a fee.
He said he believed the listed company had plenty more potential, as indicated by the Morrison family owning about 5% of Infratil directly and indirectly through its holding in Morrison.
“The investments it’s got, in the sectors that it’s in, it is still a growth story.”
Out of Infratil’s investments in 15 assets, 60% were based overseas, with the majority in the renewable energy industry, such as Manawa Energy (formerly Trustpower) and Tilt Renewables, or digital infrastructure, such as One NZ and CDC Data Centres.
“I think it’s still actually a very strong positive outlook, but it’s not a classic portfolio construction,” Bogoievski said.
Infratil’s best investment to date was the Port of Tauranga, from which it made six times its money, and fuel company Z Energy, which returned almost five times.
But Bogoievski revealed it was not always smooth sailing.
For example, it struggled to find the money to buy Shell’s downstream New Zealand fuel assets – what would become Z – with the New Zealand Superannuation Fund.
“We were scrounging and looking at every empty drawer for that $200 million to fund our share of it.”
Go behind some of Infratil’s biggest deals with its most prominent leaders in today’s episode of Markets with Madison above.
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Madison Reidy is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
Meanwhile, Infratil and Fisher & Paykel’s lofty heights underpinned the weekly gain.