There has been a noticeable increase in allocations to infrastructure by both institutional and retail investors over the last five years. This has been driven by a desire from investors for income, inflation hedging characteristics, a low correlation with other asset classes, and, where possible, liquidity.
Prepared by Consilia Capital, this paper discusses:
The term ‘infrastructure assets’ and the key investment characteristics investors look for
How the listed and unlisted sectors differ and how allocations to listed infrastructure are determined
The benefits of combining listed and unlisted infrastructure and the benchmarks that can be used for unlisted infrastructure
The impact of combining listed and unlisted infrastructure and the practical applications for adding listed infrastructure to a portfolio of unlisted infrastructure assets
Read the full report here.
All investing involves risk, and you should consider investment risks before making an investment decision. One of the key risks of investing in infrastructure assets is illiquidity, and it should be noted that this risk still remains even if listed and unlisted infrastructure assets are blended. While every care has been taken in the preparation of this paper, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This paper has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this paper, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This paper is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital. This paper, unless otherwise specified, is current at the date of publication and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after that date.