This training programme looks at the history of infrastructure as an asset class. A new, dedicated infrastructure asset class was invented in the 1990s in Australia, spreading to Canada and Europe in the early 2000s, followed by the US and other regions. In a low interest-rate environment, its stylised investment characteristics, such as long-term, stable cash flows, downside resilience, low correlation to business cycles, partial inflation-hedge, look very attractive to investment boards. Now, players of all sorts have joined the race for real assets, pushing valuations up.
It must be noted however that investing in infrastructure is not new. International railways, ports and city development were core ingredients of investor portfolios in the 19th century, as are stocks and bonds of utilities and transport companies since the privatisations of the 1980s.
However, and to put things further into perspective, the actual activity in ‘new wave’ unlisted/private infrastructure is lagging the hype by some measure. The OECD finds an average allocation of roughly 1% among large pension funds worldwide, although there have been recent announcement by financial regulators increasing such allocations, for example in Switzerland from 0.5% to 6%. Further, there is an enormous disparity between investors and their approach to the asset class. Some investors have shifted asset allocations targets to over 10%, a majority of smaller ones are either yet to invest or have significantly low allocations.
This training course looks at providing clear and concise understanding of what does it take to invest in infrastructure. However, despite the hype investors must understand that conditions continually change, markets shift and new considerations arise. This course on Infrastructure as an Asset Class provides a clear reference based assessment of the current global infrastructure markets, with in-depth analysis and expert guidance toward effective infrastructure investment. We start with an overview of history of infrastructure as an asset class, looking at trends and what current challenges exist in a post-pandemic situation.
Understanding of infrastructure as an asset class?
What are the critical risk associated with infrastructure and how to manage these?
Does the type of contract that build the infrastructure matter?
How do we deal with revenue
certainty’ and what are the different modalities of demand and thus revenue risk?
Characteristics of Selected Infrastructure Sectors and Sub sectors
Risk-Reward of Private Infrastructure in Pensions Portfolio