MIIF’s strategy is to achieve growth through long-term, direct infrastructure investments that deliver attractive and sustainable levels of returns. MIIF currently has 40.5%* of its portfolio located in Asia. Going forward, MIIF aims to only make quality, Asian-focused and value-accretive acquisitions.

MIIF intends to make long-term investments in assets with a long-term horizon and does not expect to actively trade the assets within its portfolio.

Where MIIF acquires majority or a substantial interest in an asset and can exert control over the business, it intends to pursue revenue growth and margin improvements as well as optimising financing structures.

MIIF will also target investments in which it will acquire minority positions and where its partners have similar objectives to its own.

Investment criteria

MIIF targets investments in a broad range of infrastructure sectors, seeking low-risk assets that exhibit some or all of the following characteristics:

• The provision of essential services to the community;
• A strategic competitive advantage due to high barriers to entry;
• A dominant market position;
• Sustainable and predictable cash flows over the long term;
• Potential for long-term capital growth;
• An experienced and capable operational management team;
• Long-term supply agreements or revenues that are governed by regulatory regimes; and
• The potential to increase returns to equity by optimising the capital structure.

* Based on 30 June 2008 valuations, numbers subject to rounding.