Infrastructure holds an important place in the fabric of modern society, serving as the backbone of the world economy.
The favourable characteristics of infrastructure can be accessed in different ways, but the attractions of investing in listed infrastructure companies include liquidity, access for retail investors to invest in the asset class, and higher yield and lower volatility relative to global equities.
What are the benefits for an investor’s profile?
The predictable cashflows generated by infrastructure assets provide clear diversification benefits for investors’ portfolios. History shows that investing in listed infrastructure enhances the returns generated by an investor’s equity exposure, while reducing the overall level of risk. The importance of taking a long-term approach cannot be emphasised enough because the longer the holding period, the more pronounced the potential benefit. Past performance is not a guide to future performance.
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