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By Mussie KIDANE, Head of fund and manager research, Pictet Wealth Management
Infrastructure assets form the spine of an economy. They are the physical structures and vital services that connect society and facilitate its orderly operation. Typically capital-intensive to construct and with long operating lives, infrastructure assets produce inflation-adjusted revenues that generate long-term, sustainable cash flows. Due to high barriers to entry, these assets also tend to benefit from a relatively low price elasticity of demand.
Estimated at USD 3.1 trillion in 2016, the global infrastructure market is vast and expected to grow by 6% per year. The need to expand infrastructure around the world has become urgent: Accord-ing to the G20’s Global...
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