Asset classes Broad Peak Finance considers as Public Sector investments under this definition include:
The asset classes above represent an infrastructural base that is deemed to be essential to the running of a modern day economy. For example, regulated utilities include water and electricity distributors who operate and are monitored under Government license and retain responsibility for maintaining infrastructure such as pipes and cables. Geographically, Broad Peak Finance invests in OECD and EEA member states only, with an emphasis on Western Europe and North America.
Historically, Public Sector debt has proven to be one of the safest and most stable asset classes for investors. Levels of default are far lower than anything seen in either corporate or mortgage debt issuance. For example, a May 2007 Moody’s report calculated average cumulative defaults in all investment grade US Municipal debt to have been less than 0.002% per annum for the previous 36 years. In European utilities, there has only been one default of a Moody’s rated entity since 1924. This occurred in Avon energy (an unregulated entity) in 2004 and ended in recoveries in excess of 95% for debt holders.
Broad Peak Finance aims to provide Investors access to this asset class with what we believe is the best risk / return investment profile in the market today.
For further information on all public sector asset classes, select Research.