Infrastructure is the cornerstone of the economy. It supports economic growth by delivering essential services that are difficult to replicate and replace. These assets cover a wide range of sectors, including airports, telecommunications networks, and traditional and renewable energy.
Many infrastructure assets, such as smart grids, energy storage and fibre networks, are critical for supporting the future development of energy transmission, urban mobility and the digitisation of services.
Infrastructure assets are funded through a combination of debt and equity similar to any other type of corporation. However, the key difference is that infrastructure provides investors with access to an asset class with a lower correlation to other securities. Given that infrastructure assets typically have high barriers to entry and may be regulated or have an element of government support, they tend to have predictable and resilient cash flows that translate to steady returns for investors.