Can infrastructure weather the next storm?

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