Infrastructure
The Case for Global Listed Infrastructure
White Paper
Nov 04, 2020
Infrastructure plays a critical role in our everyday lives. Global commerce depends on a massive transportation system of roads, railroads, ports and airports to transport goods around the world. Our cell phones would not work without wireless towers, or the electricity used to charge batteries and transmit data. And we could not fill our gas tanks without the vast network of pipelines that transports energy from the well.
Our view is that global listed infrastructure also has a critical role to play in portfolios via a long-term strategic allocation. The case for exposure to global infrastructure equities is based on the historical investment characteristics of the asset class, including:
1. Consistent and Higher Cash Flows: Global infrastructure equities have historically generated more consistent and higher cash flows than global equities.
2. A Strong Total Return Profile: The asset class has historically provided higher income and capital appreciation than the broader global equity market.
3. Insulation from Inflation: Global infrastructure equities have exhibited positive sensitivity to inflation, outperforming global equities historically during periods of elevated inflation.
We define the global listed infrastructure universe, delve into what history can tell us about the long-term case for allocating to global infrastructure equities, and explain the potential advantages of Brookfield’s approach to accessing the asset class.
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Disclosure Information
This material is not, and is not intended as investment advice, an indication of trading intent or holdings or the prediction of investment performance. All information is current as of the date of this material. Views and information expressed herein are subject to change at any time. Brookfield Public Securities Group LLC disclaims any responsibility to update such views and/or information. This information is deemed to be from reliable sources however, Brookfield Public Securities Group LLC does not warrant its completeness or accuracy. This presentation is not intended to, and does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any security, product, investment advice or service (nor shall any security, product, investment advice or service be offered or sold) in any jurisdiction in which Brookfield Public Securities Group LLC is not licensed to conduct business, and/or an offer, solicitation, purchase or sale would be unavailable or unlawful. Indexes are unmanaged and are not available for direct investment. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results.