Hover over the below graphic to find out more about the world of infrastructure
Meeting investor needs
Unlisted infrastructure is a natural fit for many institutional investors. Benefits of investing in unlisted infrastructure assets include:
Infrastructure's fundamental role in society
Infrastructure underpins the functioning of modern society. Access to clean drinking water, sanitation and waste, the supply of electricity and heat, the ability to commute, leisure travel, the transportation of goods and the facilitation of trade flows with the broader global economy are all dependent on the availability of infrastructure assets.
The funding gap
There is a gap between infrastructure funding requirements and capital available to invest in infrastructure assets across the developed world. Global infrastructure expenditure needs total an estimated US $50 trillion over the next 25 years.1
However, governments are increasingly burdened with debt, constraining the amount of investment in the sector. In the developed world, investment in infrastructure as a percentage of GDP has fallen from 3.6% in 1980 to 2.8% in 2008.2
The resulting shortfall will need to be met by private capital, creating opportunities for investors such as CFSGAM infrastructure funds.
A growing asset class
Infrastructure has grown to become a major alternative asset class, with many of the world’s largest institutional investors such as pension funds and sovereign wealth funds now making dedicated allocations to the sector. According to a Towers Watson 2011 Survey, pension funds have invested US$112 Billion in infrastructure worldwide, ranking just behind property and private equity (fund of funds).
Demographic shifts – such as population ageing are set to drive further growth in infrastructure as an asset class. As investors favour low-risk, yield-oriented investments to meet their long-dated liabilities, they are likely to increase their allocations to unlisted infrastructure.
1Source: Ernst and Young
2Source: McKinsey Global Institute
