IGF - Listed Vs. Unlisted Infrastructure: A Misunderstood Rivalry?

2024-05-17 10:40:00 ET

Summary

• Traditionally, infrastructure portfolios have been divided into listed and unlisted segments, with investors choosing between one or the other. In practice, integrating both into portfolios strengthens investment approaches in the current economic landscape.
• Listed infrastructure typically focuses on lower-risk profiles (super-core and core), featuring stable, mature assets with predictable revenue streams that are easier to trade.
• Unlisted infrastructure assets allow for direct control and higher yields while enabling access to additional risk profiles. Unlisted assets often have lower correlation with financial markets and provide stable, long-term returns that are insulated from market volatility.
• When building portfolios, we believe investors should consider utilizing both segments of the market to maximize their opportunity to access attractive returns while managing risks, including portfolio volatility and liquidity.

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