Why invest in infrastructure?
Infrastructure is essential to the functioning of society and the modern economy, Deutsche AWMs latest research report – Why Invest in Infrastructure? argues.
Hamish Mackenzie, head of Infrastructure, Europe and Debt, and Gianluca Minella, Infrastructure specialist, Research and Strategy highlight that provision of infrastructure as a government responsibility has shifted over the decades, infrastructure has gained recognition as a distinctive asset class holding considerable appeal for investors:
- Demand for private infrastructure capital continues to grow, driven by governmental budget constraints and the need for investment to facilitate continued economic growth.
- Unlisted infrastructure offers the possibility to own real assets with performance characteristics that are potentially resilient to the economic cycle.
- Unlisted infrastructure investment has the potential to offer diversification benefits for multi-asset investors due to the lower correlation of performance with other major asset classes.
In this paper we define infrastructure and its role in society and as an asset class. We provide an overview of the benefits, risks and historical performance and rapid growth, concluding with the emerging role of infrastructure debt in a changing regulatory environment.
See full report here Deutsche AWM – Why Invest in Infrastructure – May 2015