Our Long Income strategy focuses on acquiring and managing assets that deliver secure, contractual income over extended durations. These assets are typically underpinned by high-credit-quality counterparties to generate inflation-correlated returns with minimal reinvestment risk, making them well-suited for liability-aware institutional portfolios.

The following section provides an overview of how we analyse long-dated, contractual cash-flow strategies across a wide spectrum of real-asset sectors. Our internal research focuses on understanding how different income structures—ranging from ground rents and income strips to essential social and economic infrastructure—behave across varying macroeconomic regimes. By studying these assets through the lens of duration, inflation linkage, counterparty strength, and contractual protections, we aim to build a robust understanding of how stable and predictable revenue streams can evolve over time. This perspective is intended to highlight the underlying characteristics that make certain long-term cash flows resilient, rather than to describe or promote any investment product or service.

In exploring these themes, our framework examines the economic rationale behind lease-based structures, concessionary arrangements, regulated payment regimes, and inflation-adjusted income profiles. We look at how these elements interact with asset quality, seniority within the capital structure, and sector fundamentals, as well as how covenant packages and contractual safeguards contribute to risk mitigation. This analysis also incorporates factors such as liquidity considerations, exit pathways, and sensitivity to broader market movements, helping us form a multi-dimensional view of how long-duration cash flows perform under different conditions. The goal is to provide a clear, structured way of thinking about assets that combine long-term predictability with defensive characteristics.

Finally, we consider the potential strategic roles that such stable cash-flow exposures may serve within a broader multi-decade context. Our work explores how contractual income streams can complement other risk factors, offer diversification during periods of market volatility, and contribute to capital efficiency or duration-matching objectives. We also assess the ways in which certain segments—particularly those tied to social infrastructure, regulated utilities, or sustainability-linked leases—align with long-term structural themes. The bullet points that follow break down this analytical approach into its core components, offering a detailed guide to how we examine the intersections of income durability, inflation protection, structural safeguards, and long-term asset behaviour.

Strategy Focus

The portfolio targets real and contractual cash flows across a range of sectors and structures, including:

• Ground Rents & Income Strips:
  Long-dated leasehold interests with upward-only rental uplifts—typically CPI or RPI linked—underpinned by institutional-grade property.

• Sale & Leaseback Transactions:
  Acquisition of operationally critical assets from corporates or public bodies, structured with triple-net leases and strong covenant packages.

• Social & Core Economic Infrastructure:
  Long-term revenue exposure to social assets (e.g. healthcare, education) and regulated or availability-based infrastructure.

• Contracted or Regulated Cash Flows:
  Exposure to assets with statutory or long-term contractual payment regimes, including utilities, renewable energy PPAs, and concessions.

Investment Objectives

• Duration Matching:
  Provides predictable, long-duration cash flows that align with long-dated liabilities—particularly relevant for long-term investment.

• Inflation Linkage:
  Index-linked structures (CPI/RPI) or fixed uplifts embedded in lease agreements mitigate purchasing power erosion and duration mismatch.

• Capital Preservation:
  Evaluation focused on seniority in the capital structure, asset quality, and structural protections to support prudent decision-making. 

• Yield Enhancement with Low Volatility:
  Incorporating expected cash-flow characteristics, market spreads, and sensitivity to traditional risk assets.

Risk Management Framework

• Counterparty Risk Monitoring:
  Review includes assessing credit strength and sectoral diversification to support prudent decision-making. 

• Structural Protections:
  Investment structures include full-repairing and insuring (FRI) leases, step-in rights, collateral packages, and rent deposit mechanisms.

• Liquidity & Exit Strategy:
  Assessment takes into account market liquidity and timing considerations as part of our internal assessment.

Characteristics

• Stable, forecastable assets over multi-decade horizons

• Diversification from market volatility

• Capital efficiency and duration hedging benefits

• ESG-aligned exposure through social infrastructure and green leases