Infrastructure CPD course  

The pros and cons of listed infrastructure

  • Learn the difference between listed and unlisted infrastructure.
  • Comprehend the advantages of investing in listed infrastructure assets.
  • Understand the headwinds facing the asset class and its impact on investments.
CPD
Approx.30min

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As Mr Langley says, undertaking detailed diligence and considering longer term risks and opportunities is crucial, regardless of ownership structure.

Hybrid investment

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Mr Haynes says exposure to listed infrastructure forms part of Whitechurch Securities’ equity allocation, rather than being a separate asset class.

However, he adds the reason why Whitechurch likes infrastructure shares is for their low beta attributes, which he says provide a “hybrid between bonds and stockmarket indices”.

Because they are stockmarket investments, he urges only investors with a five-year time horizon and longer to consider them.

He suggests there are a broad number of reasons to consider listed infrastructure in a long-term investment portfolio.

“The underlying shares of infrastructure companies tend to produce regular, stable income distributions – an attractive prospect in this lower for longer interest rate environment and this has been a key driver in the increased desirability,” he adds.

eleanor.duncan@ft.com

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Is the following statement by Mr Hollands true or false? Governments in the developed world are also decreasing their spend on infrastructure to try and boost growth and efficiency after years of relying excessively on the tools of monetary policy, such as low interest rates, to support their economies.

  2. By the year 2050, how much of the world's population will live in urban areas, according to Legg Mason?

  3. Mr Meany says listed infrastructure has market risk but also offers which three things?

  4. Legg Mason lists three features of unlisted infrastructure, but which is the odd one out?

  5. Mr Haynes says if the interest rate cycle turns, then what type of projects could be particularly under pressure?

  6. Mr Haynes says the reason he likes infrastructure shares is for their low beta attributes which provide what?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Learn the difference between listed and unlisted infrastructure.
  • Comprehend the advantages of investing in listed infrastructure assets.
  • Understand the headwinds facing the asset class and its impact on investments.

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