Infrastructure Investment

Infrastructure Investment - Articles & White Papers

Research and white papers on infrastructure investment for institutional investors. Some Australian and Canadian pension funds have 20 years experience of infrastructure investing, and our most popular paper draws lessons from their experiences. Most institutional investors lack experience in infrastructure as an asset class, meaning that guides to infrastructure investing are popular. For funds unable to consider private infrastructure investment, listed infrastructure is an alternative which can provide liquidity and diversification, and we feature a number of white papers on listed infrastructure investments. Private infrastructure is an illiquid asset, so investors need to consider not just the trade-off between return and risk, but also the third dimension of liquidity. Private infrastructure investment can also pose political and regulatory risks, and one popular article considers the mitigation of these risks. Other topics explored in this section include green infrastructure, infrastructure governance, infrastructure finance, and infrastructure debt valuation. Analysis of the top infrastructure asset managers and investors can be found in the Towers Watson Global Alternatives Survey, while Preqin provide regular investor reports and occasional special reports, such as on service providers in infrastructure investment.
  • Cohen & Steers

    Global Infrastructure: The Listed Alternative (Cohen & Steers)

    With more institutions allocating to infrastructure, the authors of this paper believe that the listed market offers a compelling solution to the rising build-up of capital in the private market, aiding investors in achieving their target infrastructure weightings, providing liquidity, and expanding the range of global investment opportunities.

  • Deutsche Bank

    Why you should not invest in infrastructure (Deutsche Bank, 2016)

    Financing infrastructure investments in the era of constrained public finances is a complex problem. Harnessing private capital, particularly from life insurers and pension funds, with the expectation of steady long-term cash flows, is the oft-proposed solution to this dilemma. This essay by Deutsche Bank subverts all of this by arguing that this solution is wrong on multiple ...

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  • Rotman International Centre for Pension Management

    Pension Fund Investment in Infrastructure: Lessons from Australia and Canada

    Since the early 1990s, the pioneers in infrastructure investing have been Canadian and Australian pension funds. Globally, these funds currently have the highest allocation of assets to infrastructure. In this article, the authors compare and contrast institutional investors' experiences in Australia and Canada, examining the pension systems, infrastructure policies, the ...

  • The Boston Consulting Group

    The Rise of Alternatives and Long-Term Investing: Strategic Asset Allocation for Large Institutional Investors (BCG)

    This report by The Boston Consulting Group provides guidance for large institutional investors on strategic asset allocation to alternative assets and thinking long-term. It examines the recent investment strategies and management practices of leading institutional investors around the world.

  • Preqin

    Preqin Investor Outlook: Alternative Assets H1 2017

    The alternative assets industry is bigger than ever, with more than $7.7tn in hedge fund and private capital assets managed globally, having grown by $300bn during 2016. Participation in multiple alternative asset classes is now the norm for the majority of institutional investors, with alternatives portfolios becoming more and more diverse. Institutional investors face a number of ...

  • Cohen & Steers

    The Benefits of Real Assets Diversification in Defined Contribution Plans (Cohen & Steers, 2017)

    With stocks and bonds facing the prospect of subdued returns, many fiduciaries of defined contribution (DC) plans are considering diversification options for their investment menu. We show how liquid real assets—including real estate securities, commodities, natural resource equities and listed infrastructure—may offer an attractive way to fill that diversification ...

  • EDHEC-Risk Institute

    The Valuation of Privately-Held Infrastructure Equity Investments (EDHEC)

    This paper by EDHEC-Risk Institute proposes a valuation framework for privately-held and very illiquid assets such as equity stakes in infrastructure projects. The authors identify such a framework as key to the process of designing long-term infrastructure benchmarks that take into account the nature of such assets as well as the paucity of available data.

  • Willis Towers Watson

    Global Alternatives Survey 2016 (Willis Towers Watson)

    This comprehensive 99-page document examines current trends in ten different alternative asset classes including hedge funds, private equity, infrastructure, real estate, illiquid credit and insurance-linked securities. The survey reveals how the preferences for alternative assets vary between different types of asset owner, and lists the top alternative asset managers within each ...

  • Deloitte

    European Infrastructure Investors Survey 2016 (Deloitte)

    This 28-page paper by Deloitte provides important insights and analysis into the current state and outlook for European infrastructure investment markets. The authors believe that the infrastructure asset class will continue with its strong performance and provide stable and secure returns.

  • Mercer

    Global Insights on ESG Alternative Investing (2015)

    Do institutional investors take into account ESG considerations when investing in alternatives? This 30 page report from Mercer and LGT reveals that 75% of investors claim to incorporate ESG criteria when selecting alternative investments. Some investors take ESG factors into account because of a belief that this will be beneficial from a pure investment perspective. Others do so ...

  • Consilia Capital

    Infrastructure Investment: Combining Listed With Unlisted

    Few papers have previously been written on the impact of incorporating listed and unlisted infrastructure funds. The authors of this paper do a number of things... they identify the key investment features investors are seeking, they define the infrastructure opportunity as made up of 4 categories of industries which range from "low risk" or "pure" industries ...

  • J.P. Morgan

    Guide to infrastructure investing

    This 2012 paper from JP Morgan Asset Management and Af2i provides institutional investors with a 70 page introduction to investing in infrastructure. The report begins by considering the characteristics of infrastructure as an asset class, and how to invest, looking at the details of direct and listed investment strategies. The valuation of infrastructure assets is examined, ...

  • UK Infrastructure Investment and Finance from a European and Global Perspective

    This study provides an overview of UK infrastructure investment and finance in a longer-term, international context, yielding interesting facts and insights for both investors and policy makers worldwide. The UK is one of the leading countries in terms of private sector involvement in infrastructure, with several decades’ experience in regulating privatized utilities and in ...

  • Cohen & Steers

    The Case for Global Listed Infrastructure (Cohen & Steers, 2017)

    Allocations to listed infrastructure have been on the rise in recent years amid growing demand for real assets offering relatively predictable cash flows and the potential for attractive real returns. This paper by Cohen & Steers examines the asset class’s historical investment characteristics and the secular themes driving significant capital formation in infrastructure globally.

  • FTSE Russell

    Meeting the demand for listed infrastructure indexes (FTSE Russell, 2017)

    Infrastructure is an asset class often seen by investors as a diversification tool that can provide a hedge to long-term liabilities by offering exposure to potentially stable, inflation-linked returns. Listed infrastructure indexes enable investors to measure the performance of an increasingly important segment of global equity markets.