Infrastructure, an asset class for all seasons

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The role of infrastructure in institutional portfolios will continue to be a prominent theme for asset allocators in 2023, along with the increasing engagement within the investment community on how to manage the ‘S’ – or social factors – within ESG.

This article explores why we believe the infrastructure asset class has a role to play as a foundation portfolio asset class aimed at securing diversified, less volatile, low correlation long-term returns.

The job of asset allocators is never easy, but the recent macro environment has been particularly challenging given correlated weakness in equity and bond markets. Increasing interest rates around the world and the impact they have had on valuations across most asset classes have proven difficult for 60:40 style investors and this has been reflected in negative returns. To us, this again highlights the strategic importance of the infrastructure asset class for asset allocators, given its resilience through economic cycles and its effectiveness as an inflation hedge.

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Meet the author


Luba Nikulina

Luba is IFM Investors' Chief Strategy Officer, responsible for leading the development of IFM’s global strategy with a focus on private markets solutions that meet the needs of Australian and global pension funds and their members. Luba joined IFM Investors from WTW, (previously known as Willis Towers Watson), where she was Global Head of Research, advising some of the world’s largest asset owners on strategy, governance and investments, managing a team of over 100 analysts. During her time at WTW, she worked in London and New York and was responsible for establishing WTW’s private markets capabilities. Luba has over 25 years of investment industry experience and has served on the UK Government’s Social Impact Investing Taskforce, City of London’s Socioeconomic Diversity Taskforce, and co-chaired the Investment Consultants Sustainability Working Group.

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