– McKinsey Global Institute.
Historically stable, and predictable returns, are the result of development projects and well-regulated existing assets. Assets like the electrical grid you draw from daily to charge your modern lifestyle. Or that magnificent new bridge, road, or airport the government just okayed.
Well-honed regulations and government oversight maintain the quality and longevity of our infrastructure assets. What’s more, an investment in the Core Infrastructure Fund is incredibly diverse. Our fund managers invest in roads, rail, seaports, airports, power, water, telecom, and more.
With returns that aren’t strongly influenced by investor sentiment, infrastructure is a nice complement to your more mood-driven investments. Because its assets aren’t listed on the exchanges, our fund has a tendency to remain poised when sentiment dips and shares rollercoaster.
All investments carry some risk. In the case of infrastructure, unexpected regulatory changes can have an impact on asset valuations. Reduced usage – fewer passengers using an airport, for example – can affect values as well. Our analysts, and those at the underlying funds, keep a close eye out for signs of these events. Moreover, our rich range of assets ensures that you’re never over-exposed in any one category.
Unlisted infrastructure is a long-term, steady, growth investment with historically attractive yields. Concrete assets like these can last for up to 100 years. That’s good news for you. Perhaps most importantly, infrastructure stimulates growth, which produces socio-economic benefits for everyone. That’s good for all of us.
– McKinsey Global Institute.