The New Zealand Infrastructure Index

The New Zealand Infrastructure Index is based on a portfolio of publicly traded infrastructure shares hypothetically bought on 1 August 2006.

The index has a base of 1000 at 1st August 2006. The percentage change shown in the right hand column reflects the net change in the index since the base date.

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What is Infrastructure?

Infrastructure covers the basic services and underlying fixed assets needed for a community to function properly. These services include telecommunications, transport, water, waste, primary energy providers and power networks, and social infrastructure including schools, heathcare facilities, post offices, and prisons.

Composition of the NZII Portfolio

Transport		34.3%
Electricity		30.1%
Primary Energy		10.7%
Telecommunications		10.2%
Social Infrastructure		9.1%
Multi-sector		5.7%

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Why Infrastructure as an Asset Class?

Internationally, infrastructure is one of the fastest growing asset classes. Infrastructure investors typically are looking for stable assets that generate consistent annual returns. As infrastructure does not tend to track other asset classes, it is often recommended as a defensive part of portfolio.

The New Zealand Superannuation Fund's investment portfolio is allocated 13% toward "alternative assets". These include New Zealand and international infrastructure, which can make up 2-5% of the fund's portfolio.

Companies in the NZII Portfolio

Transport companies include the following port and airport companies: Auckland International Airport, Lyttelton Port Company, Northland Port Corporation, Port of Tauranga and South Port New Zealand. The following carriers are also included: Air New Zealand, Freightways, Mainfreight and Toll NZ.

Electricity companies include: Contact Energy, Horizon Energy Distribution, TrustPower and Vector.

Primary Energy companies include New Zealand Oil & Gas and The New Zealand Refining Company.

Telecommunications companies include Telecom Corporation and TeamTalk

Social Infrastructure companies include Metlifecare, Ryman Healthcare and Wakefield Health.

Infratil is classed as a Multi-sector infrastructure investor.