October 3, 2022
Posted by Macquarie Asset Management
Revisiting the asset class in a period of high inflation and rising interest rates
Infrastructure investment continues to gain interest among institutional investors, given its potential to generate attractive, inflation-hedged returns. In addition, unlisted infrastructure’s long-term holding period and the regulated or contracted nature of its revenues can enable it to provide consistent and stable returns through a period of market volatility.
Long-term drivers such as decarbonisation and the energy transition will involve profound changes across a range of infrastructure sectors, offering attractive investment opportunities for investors, while supporting the transition to a net zero emissions world.
In this paper we’ll discuss:
- why the current environment may represent an attractive opportunity to invest in the asset class
- the asset class’s historical performance, including during periods of high and low inflation as well as rising and falling interest rates
- long-term demand drivers for infrastructure.