M&G International Investments Switzerland AG

An M&G guide to investing in listed infrastructure

Infrastructure serves as the backbone of the global economy.
Modern life hinges on the functioning of a vast network of systems and structures that enables us to live and work as we do. Building and maintaining these important assets can cost a lot, but the rewards for long-sighted investors in successful assets can be great.
This guide explains our approach to investing in listed infrastructure, and why we believe that this asset class can bring valuable benefits to long-term investors.
What is infrastructure?
Infrastructure broadly refers to assets associated with the provision of essential services for the safe and prosperous functioning of global society. These are physical assets on which we all rely every day – from the utilities that provide our power and water, to the toll roads and railways on which we travel. These types of businesses typically enjoy the following characteristics:
• Long-life assets governed by long-term contracts
• Inflation-linked revenues
• Stable and growing cashflows
The relatively predictable nature of these cashflows is highly suited to long-term investors who are looking for a reliable and growing income stream, with their capital value supported by physical assets.