Good quality infrastructure is needed for any society to function effectively. Energy supply, water, roads, railways and airports are all essential services used by the public every day.
Certain types of infrastructure can be decades, or even centuries old. However, responsibility for construction and maintenance has traditionally been in the domain of the public sector, be that national or local government, or possibly supranational organisations such as the European Union. Only relatively recently has infrastructure opened up into an investable asset class.
Since infrastructure became accessible to private investors, its popularity has grown almost exponentially. Last year, global fundraising for privately owned or ‘unlisted' infrastructure projects reached a new record level. According to Preqin, a specialist research firm, capital inflows in 2018 reached $85 billion1.
Investors should be aware that past performance is not a guide to future results. The value of investments, and the income from them, can go down as well as up and investors may get back less than the amount invested.
Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.