Infrastructure

Infrastructure companies have the advantage of good return potential and, at the same time, a more stable performance than traditional equity investments on average.

Cristina Saalasti, Private Banker

Among Real Assets, infrastructure plays a key role. The case for a strategic allocation to global listed infrastructure is compelling. The asset class has delivered attractive annualised total returns over the long-term, often outpacing both global equities and bonds.

An investment in global listed infrastructure should be seriously considered in any mixed-asset portfolio, or as a complement to a private infrastructure allocation. Key benefits of listed infrastructure are attractive net total returns (both yield and capital), relatively stable cash flows generally linked to inflation as well as a diversification across regions and sub-sectors.

Listed infrastructure is an attractive proxy for private infrastructure investment over the medium to long-term, offering transparency and liquidity versus private investment. It is a strategic investment priority worldwide.

Over time, infrastructure assets have exhibited relatively stable cash flows and an element of inflation protection, which hold considerable appeal for investors who focus on both yield and offsetting or hedging their long-term liabilities.

According to the 2019 Global Infrastructure Report by Preqin Ltd, a leading provider of financial data and information on the alternative assets market, infrastructure plays an increasing role in institutional portfolio allocations. The report highlights that more than half of the institutional investors surveyed plan to increase their allocation to infrastructure over the long term. A balanced, blended approach to infrastructure investment provides stable income, global diversification and transparency within a cost-effective framework.

UB Asset Management is a member of the Global Listed Infrastructure Organisation (GLIO), the representative body for the $2.5 trillion market capitalisation listed infrastructure asset class.

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