Whitehelm Capital

Advisory Risk

Whitehelm plays an integral role in the construction and management of infrastructure portfolios, developed according to each client’s specific requirements.

Tailored Approach

Whitehelm Advisers offers clients a tailored approach to infrastructure portfolio construction and risk management, developed with each client’s specific requirements in mind.  This process is a dynamic framework, not a set of static guidelines.

Portfolio Construction

While factoring in traditional diversification elements (such as sector, geographic exposure and vintage) to minimise risk, we also incorporate a proprietary Risk Index overlay.

While ensuring appropriate diversification, this approach also allows clients the ability to specifically define key factors which are important in shaping their infrastructure portfolios (such as a bias to a particular geography through to a preference for higher yielding investments).

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Idiosyncratic and Market-Wide Risks

Given the concentrated characteristics of the infrastructure portfolios and the idiosyncratic risk of individual assets, portfolio construction and on-going risk management should extend beyond simple diversification.

Our asset specific risk assessment includes development of detailed scenario analyses and consideration of maximum loss scenarios for each potential investment and existing asset. Infrastructure sector expertise is key to modelling appropriate scenarios and shocks, providing meaningful analysis for the investment process.

While asset specific exposures can be significant, market-wide risks can also aggregate across asset sector, geography and vintage and become more correlated at times during heightened financial stress. Key market-wide risks impacting alternative asset portfolios include changes to interest rates and inflation, exposure to economic cycles and credit spreads and leverage. Accordingly, our factor-risk assessment provides an additional overlay above the traditional elements typically used for portfolio construction and risk minimisation.

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