Global infrastructure is a rapidly growing investment class that is largely protected from stock market volatility, economic downturns and inflation – hence delivering stable, predictable returns (dividends and capital gains) over the long term.
Global infrastructure is an inherently safe and stable investment as it represents essential ongoing community services that society requires to function and prosper over the long term, such as gas, electricity, water, roads and airports.
It is protected from inflation because the price a consumer pays for their use of global infrastructure assets is often indexed to inflation. Given the inflation-protection and essential service attributes, there is less correlation between global infrastructure and other equities.
The global infrastructure asset class is expanding because governments around the world are increasingly selling existing public assets to private enterprise, as well as inviting the private sector to tender for major community projects, such as toll roads.
This is creating more investment opportunities in both developed countries and emerging markets as well as greater sector and geographic diversification for investors.
Given the defensive nature of global infrastructure, investors are increasingly viewing this asset class as an important cornerstone element of their investment strategy.
Click here to view a list of the key investment characteristics of global infrastructure.
