INF - The Case For Global Listed Infrastructure
2024-05-22 14:00:00 ET
Summary
- Integrating GLI into a traditional 60/40 portfolio by substituting 10% of equities holds the potential to provide similar returns while lowering overall portfolio risk.
- In market environments in which defensive positioning is warranted, portfolios that incorporate GLI have the potential to deliver outcomes that are differentiated to an even greater extent.
- We have high conviction that fundamental growth drivers for listed infrastructure companies will remain tailwinds over the coming decades.
Investing in essential service providers, which are integral to our daily lives, results in unique investment characteristics that can diversify your portfolio across market cycles. The defensive growth profile of the asset class complements equities, fixed income, and private infrastructure. Integrating GLI into a traditional 60/40 portfolio by substituting 10% of equities holds the potential to provide similar returns while lowering overall portfolio risk.
Portfolio comparison: Risk and return profile
28-year, annualized* (1995-2023)
As of 31 December 2023. Source: FactSet. *Time period providing earliest available data across asset classes. Listed infrastructure is represented by a 50/30/20 blend of MSCI ACWI Utilities Index, MSCI ACWI Transportation, and the Alerian MLP Index through March 2015, and the FTSE Global Core Infrastructure 50/50 Index thereafter. The FTSE index launched in March 2015. Global equities represented by MSCI All Country World Index. Global bonds represented by Bloomberg Global Aggregate Index. Past performance is not indicative of future performance and should not be relied upon to base an investment decision. Index performance information reflects no deduction for fees, expenses, or taxes. Indices are unmanaged and individuals cannot invest directly in an index.
