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 ...

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