Global listed infrastructure, the opportunity
Global demand for infrastructure is surging - With an estimated US$57 trillion in investment required between 2013 and 2030i and fiscally constrained governments struggling to keep pace with demand, the listed infrastructure sector has grown rapidly. This has created the opportunity for informed investors to benefit from assets with the potential to generate both income and capital gains over the long-term.
Strong cash yield with ongoing growth potential - In an environment of slow economic growth and low interest rates, infrastructure assets can be an attractive solution for investors seeking stable returns and attractive yields. Infrastructure businesses typically provide essential services in controlled, monopoly style environments, often with revenues locked in by extended contracts or regulatory frameworks. As a result, they offer predictable, inflation-linked returns with low volatility and a low correlation to traditional asset classes such as equities and fixed income.
The liquidity and diversification of a listed investment - By choosing listed infrastructure, rather than a direct investment, you can benefit from:
Liquidity and transparency. Liquidity and constantly updated pricing gives our investment team more flexibility in building and rebalancing a portfolio of quality assets.
Diversification. Exposure to a broad range of assets for the same invested capital, allowing wider diversification across sectors and regions.
Specialist expertise. Access to a dedicated listed infrastructure investment team with significant specialist experience managing portfolios of infrastructure securities. Team members have covered multiple infrastructure sectors and regions through their careers.
1 McKinsey Global Institute, January 2013