170620_infra

Past, present, future

Articles | 20 June 2017

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While investors have embraced infrastructure as an asset class since the 1990's, the idea of investing in infrastructure via listed securities was developed by a small number of Australian asset managers in 2005-2007. Today, we estimate funds under management in Global Listed Infrastructure Securities (GLIS) to stand at around US$100 billion. The amount of investable assets within the GLIS asset class has grown significantly in the past decade, in terms of both number and size of companies to invest in.
Where to next for a growing asset class?

As bottom up stock pickers, we always regard big picture crystal ball gazing with a large degree of apprehension. With that disclaimer, following are a few key issues that we believe will impact GLIS over the next decade:

  • - Higher allocations to liquid real assets
  • - Structural growth
  • - De-globalisation and the return of economic nationalism
  • - Disruption including renewable energy, autonomous cars and 3D printing
  • - New supply of infrastructure assets to GLIS

In this whitepaper we examine these trends, as well as major GLIS trends over the past decade, in detail.