Podcast: Kyle Mangini on infrastructure and its role in building resilient portfolios
IFM Investors’ Global Head of Infrastructure Kyle Mangini was interviewed for Bridgewater’s Observations podcast series on the topic of infrastructure’s role in building resilient portfolios.
Earlier this year, Bridgewater co-CIO Karen Karniol-Tambour wrote a Daily Observations exploring the role of infrastructure in portfolios. A key point she noted was that while exposure to infrastructure has the potential to improve resilience by providing inflation protection and stable cash flows, certain infrastructure assets, which investors might think would be diversifying, end up performing similarly to the equities they already own. As a result, IFM believes that it’s important that investors understand what they’re investing in at a deep level to ensure they’re getting the qualities that they’re looking for.
What was so great about talking with Kyle is that he not only shares how IFM thinks about investing at the high level; he also shares his thoughts on the practical, hands-on details of infrastructure investing.
In this podcast, Kyle shares how IFM thinks about infrastructure investing not only at the high level, but also in terms of the practical, hands-on details. He discusses the underlying cash flows across different types of infrastructure assets; how those differences result in diverse performance characteristics; and some of the pitfalls those looking to build an infrastructure allocation should watch out for.
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To learn more about how we seek to maximise the inherent characteristics of infrastructure and the opportunity they present, read our companion papers.
The infrastructure opportunity - Part One: the role of infrastructure in long-term resilient portfolios
As investors seek to navigate the post-COVID era, their focus is on building robust portfolios that are resilient to the long-term effects of market shocks and volatility. In this context, there lies an opportunity to expand traditional approaches to portfolio construction to include a greater allocation to unlisted infrastructure.
The infrastructure opportunity - Part Two: Making the most of infrastructure allocation
Tapping into the full potential of unlisted infrastructure calls for disciplined acquisitions, considered portfolio construction and active asset management. These approaches must align with the attributes of different infrastructure assets and be driven by a long-term investment thesis.