Global listed infrastructure companies have distinct investment characteristics that we believe make the asset class a strong complement to investor portfolios. The asset class may provide a unique combination of defensive characteristics and long-term growth potential. We explore listed infrastructure’s historically attractive risk-adjusted returns and current relative valuation, as well as the secular investment themes driving increased investment in the asset class and value creation for investors.
Essential Assets Infrastructure companies own the physical assets that provide essential services that underpin society’s function and economic growth.
Portfolio Resilience Listed infrastructure has historically delivered attractive income-driven total returns across market cycles. The asset class may mitigate portfolio downside risk.
Attractive Valuations Listed infrastructure is attractively valued relative to equities and fixed income. Also, listed infrastructure trades at a double-digit discount to the value of similar assets in private markets.
Long-term Secular Tailwinds Investors may benefit from listed infrastructure’s critical role in the world’s decarbonisation initiatives and the digital economy’s enablement.
A Strong Complement Listed infrastructure may enhance portfolio diversification. We recommend that investors consider funding listed infrastructure from an allocation to global equities or from other real assets.
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