Infrastructure now commands attention from institutional investors globally, however, investors continue to grapple with a shortage of high-quality information. This Infrastructure Insights Series seeks to close this information gap.
Infrastructure now commands attention from institutional investors globally, having established itself as a major alternative asset class. Yet investors continue to grapple with a shortage of high-quality information upon which to base investment decisions.
For several years now, we have sought to close this gap, with research on topics as diverse as asset class performance and benchmarking, active management and sustainability at the asset level and mapping market activity in the core infrastructure space.
Our latest research insights come at an interesting time for the infrastructure market.
New investors face a potentially bewildering array of investment choices under the ‘infrastructure’ banner. Do they opt for greenfields or brownfields? Developed or emerging markets? Debt or equity? Listed or unlisted? Or a combination of these? Each option bears a different risk-return profile and performs differently in a portfolio.
Even seasoned investors are re-evaluating the efficacy of their strategies. With more participants in the market, how do they ensure they are able to deploy capital successfully? And how do they find value given hot competition in some segments of the market?
Our first paper, ‘Infrastructure Comes of Age’, takes stock of the infrastructure investment market. We also profile investor appetite for various infrastructure strategies, discuss the case for core infrastructure and evaluate the performance of the asset class over the past 15 years.
The second paper, ‘Shifting Sands’, looks at the demand side of the equation, charting the changing investor base on a number of dimensions. One thing is clear: the new breed of investors bears little resemblance to their more established counterparts.
Finally, our third paper ‘Bottlenecks and Bonanzas’ completes the picture with the supply side of the investment equation.
Together, these papers aim to paint a picture of the infrastructure universe from a core, brownfield standpoint. On behalf of the team here at First State Investments, we hope you find these of interest and look forward to sharing further insights with you.