Stephen West: Why should clients have an allocation to UK infrastructure?

A stand-alone asset class

clock • 4 min read

The combination of income, low volatility and upward-only inflation linkage means infrastructure investing is strongly differentiated from equities and bonds, argues Stephen West, and merits closer investor attention

Infrastructure surrounds us every day as we travel to work, visit the doctor and drop our children off at school. These are the core assets of the economy that provide the foundation on which economic development depends. The investible universe in the infrastructure sector is extremely diverse but what the projects have in common is that the assets generate long-dated, reliable cashflows with inflation linkage. Inflationary pressures are clearly building in the global financial system, with measures in the UK further raised due to imported inflation. UK infrastructure projects range ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

PA360: Framing of information to investors 'extremely pervasive'

PA360: Framing of information to investors 'extremely pervasive'

Consumer Duty states consumer biases must not be exploited

Jenna Brown
clock 25 April 2024 • 1 min read
Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 19 April 2024 • 2 min read