Infrastructure is many things and can play many roles in an investment portfolio and is an essential and growing investment thematic for both institutional and retail investors.
Infrastructure offers exposure to megatrends and the global economic recovery. Investments can be defensive, provide income, inflation protection and long-term capital growth.
Infrastructure is diverse in nature as it is the physical and organisational structures and facilities needed for the operation of society or enterprise - think toll roads, power supplies, gas pipelines, buildings and airports. Opportunities also include solar, wind, sewage, railroads and communication networks.
ausbiz keeps investors across the latest in infrastructure news with a dual focus on listed and unlisted opportunities.
What is infrastructure investing?
There are listed and unlisted opportunities in infrastructure.
Listed infrastructure involves investing in companies taking advantage of infrastructure opportunities and tackling infrastructure challenges facing society. Investing in listed infrastructure can provide Australian investors opportunities across the globe.
Unlisted infrastructure often falls in the ‘alternative’ investing basket and is achieved by investing directly in the assets themselves and/or through pooled investment vehicles. These assets are privately held rather than listed on the sharemarket. Unlike listed infrastructure, unlisted infrastructure is valued on periodic valuations of the underlying assets.
Why invest in infrastructure?
Essential infrastructure can be less sensitive to the economic cycles; people need electricity and water even in periods of slower economic growth. Therefore infrastructure can add defensive qualities to a portfolio.
Investing in infrastructure can also provide exposure to long-term structural themes or megatrends, for example, the build-out of renewable energy and increasing reliance on mobile data. Such infrastructure investments are often held for long-term capital growth.
Infrastructure investments can also offer investors exposure to steady, predictable cash flows and protect against inflation.
Infrastructure on ausbiz
ausbiz examines infrastructure investing from all angles. We bring investors insights and analysis from listed and unlisted infrastructure experts, including the latest infrastructure news on the M&A front.
We talk about risk and return, megatrends, and examine the latest in urban infrastructure news, including the transformative forces shaping the urban landscape and changing the global economy, business, and society.
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