Understanding the risk profile of GDP-linked assets
Infrastructure has generally shown resilience in economic slowdowns, and through proprietary risk management and diversified exposure across defensive and cyclical sub-sectors, it potentially offers investors meaningful downside protection and attractive long-term risk-adjusted returns.
Key Takeaways
- Infrastructure has proved resilient in past economic slowdowns and can outperform traditional assets in periods of low growth and high inflation
- We use proprietary investment risk management and portfolio construction tools to analyse the susceptibility of each of our fund assets’ revenue streams to GDP-linked risks and diversify exposures
- While infrastructure sub-sectors such as utilities have well understood defensive properties, other sub-sectors such as toll roads, seaports and airports have historically provided important downside protections and positive long-term risk-adjusted returns for investors
Meet the authors
Ashwin Mathur
Ashwin heads up the Infrastructure Portfolio Management Team, and is responsible for a broad set of portfolio construction, risk management and fund analysis outcomes across all of IFM Investors’ infrastructure products.
Kalie Fung
Kalie is a senior member of the Infrastructure Portfolio Management Team, responsible for a broad set of portfolio construction, risk management and fund analysis outcomes across all of IFM Investors’ infrastructure products as well as asset management of Port of Brisbane.
Abbie Sui
Abbie is a senior member of the Infrastructure Portfolio Management Team, responsible for a broad set of portfolio construction, risk management and fund analysis outcomes across all of IFM Investors’ infrastructure products as well as asset management of Adelaide Airport.
Aaron McGovern
Aaron is responsible for the origination of infrastructure investments and ongoing management of assets. Aaron has worked on transactions in the Americas, Europe and Australia in the transport, energy and utilities sectors. Aaron is currently a board member of Aleatica and Impala Terminals.
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