Accelerating economic development and potential investment benefits.
Infrastructure improves living standards and supports economic development. Global growth dynamics continue to drive public and private investment in infrastructure pointing to opportunities in areas such as the development and modernization of roads, power networks, water systems, and telecommunication networks.
Long-duration contracts and the near-monopolistic characteristics of infrastructure assets have the potential to provide a source of level income and cash flow.
The persistent demand for infrastructure products and services has resulted in a historically low correlation to other asset classes providing potential portfolio diversification benefits.
Infrastructure has historically generated attractive total returns consisting of current income and appreciation.*
Many infrastructure assets have inflation-linked pricing in their contracts functioning as a potential hedge against future inflation.
* MSCI, J.P. Morgan Asset Management
As digital technologies expand, investment in digital infrastructure is needed to keep pace with the growth.
This will require investment in digital infrastructure such as data centers, cellular towers, fiber networks, and more to keep data moving and stored in a secure environment.
Global energy demand has accelerated as countries expand and modernize their power systems, strengthen energy security, and diversify away from less predictable trading partners. An increasing share of global energy creation is expected to come from advanced, scalable, and cost-efficient sources.
Significant investment in energy infrastructure is required from both public and private sectors, creating opportunities across the full value chain, including generation, transmission, distribution, and storage.
Aging roads, water systems, telecommunication systems, power networks, and other infrastructure hinder economic development and quality of life.
Investment is needed globally to close the gap required to maintain and modernize existing infrastructure to foster economic growth.
Learn how investing in global sustainability initiatives can grow portfolios and income while doing good.
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