We believe infrastructure is an essential part of a diversified investment portfolio. An infrastructure asset is one that marries a physical asset essential to society’s function with predictable long-term cash flows. As infrastructure assets are typically monopolistic, they provide a low-risk way to diversify while the duration and resilience of the cash flows can give investors attractive income and growth potential.
Growth in demand for the asset class is coming from the growing need to upgrade and improve existing infrastructure in developed markets, and the need for new infrastructure in developing countries driven by economic, population, and urbanization trends.
A global listed infrastructure strategy may benefit from the liquidity of the equity markets which allows the flexibility to efficiently reallocate the portfolio to capitalize on a market opportunity or to mitigate risk. An allocation to Global Listed Infrastructure may provide attractive income and total returns while typically exhibiting low volatility and low correlation to traditional asset classes.
In an asset class where on-the-ground presence is essential to building relationships, underwriting market potential, assessing regulatory risk and identifying investment opportunities, our team can leverage and benefit from CBRE’s extensive global network and our research locations worldwide.
