Core infrastructure’s growing role in institutional portfolios
- As a new asset class, infrastructure has proved itself over the last decade,
establishing a strong track record that highlights its potential to enhance returns
and mitigate risk as part of a broader portfolio.
- Furthermore, the expected total return for private infrastructure is now greater
than the expected total return of a 60/40 portfolio, with income also representing a
substantial component of the return from infrastructure.1
- In this paper we explore how private core infrastructure provides investors with the
D-I-Y benefits of diversification, inflation protection and yield along with a strong
focus on environmental, social and governance (ESG) principles.
- We also examine recent trends in valuations, discuss options for accessing
infrastructure investments, and explain why—with institutional investors’ average
allocations still below target—the expansion of the asset class continues to provide
opportunities for early movers.