Infrastructure equities make sense now – and in longer term

‘In turbulent times people will still use roads and airports and still consume the same levels of water and electricity.’ Stock image

Infrastructure equities make sense now – and in longer term

Independent.ie

Infrastructure has many appealing qualities as an asset class and is one of the fastest growing alternative asset classes. It is broken up into two types – listed and unlisted. Listed is holding the equity of an underlying infrastructure company while unlisted is investing capital in the actual infrastructure asset ie private equity. In our opinion the former is far more preferable. An infrastructure asset is usually some form of economic infrastructure – a port or airport, toll road, mobile or electricity network. Additional categories include social infrastructure and renewable energy assets.

https://www.independent.ie/business/personal-finance/infrastructure-equities-make-sense-now-and-in-longer-term-37207126.html

https://www.independent.ie/business/article37207125.ece/dda17/AUTOCROP/h342/2018-08-12_bus_43098214_I1.JPG

Infrastructure has many appealing qualities as an asset class and is one of the fastest growing alternative asset classes. It is broken up into two types – listed and unlisted. Listed is holding the equity of an underlying infrastructure company while unlisted is investing capital in the actual infrastructure asset ie private equity. In our opinion the former is far more preferable. An infrastructure asset is usually some form of economic infrastructure – a port or airport, toll road, mobile or electricity network. Additional categories include social infrastructure and renewable energy assets.

Infrastructure gives investors the defensive characteristics they need while also exposing them to cyclical trends likely to benefit from an upswing in economic growth. Infrastructure assets tend to have higher barriers to entry, inflation-linked revenue with easily mapped future cash flows. These cash flows are less cyclical due to the nature of the asset. In turbulent times people will still use roads and

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