How is listed infrastructure coping in an environment of rising inflation and volatility?
8 min read12 May 22
By M&G Investments
Inflation forecasts have increased dramatically during the past year, and investors’ expectations are shifting from thinking that inflation would be transitory to believing that it will become entrenched
With interest rates on the rise, infrastructure, which has traditionally been seen as a “bond proxy” type of asset with cashflows highly sensitive to movements in interest rates, may not be the first port of call for investors
However, we believe listed infrastructure merits a closer look not only because many of the companies within the asset class have cashflows that are linked to inflation, but also due to its role in the transition to a world of net-zero carbon emissions and as a potential beneficiary of other long-term structural trends, such as digital connectivity and demographics.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.
Viewing this website in Switzerland is not permissible with the exception of the distribution to qualified investors according to the Swiss Collective Investment Schemes Act with the status of 01.07.2016, the Swiss Collective Investment Schemes Ordinance with the status of 1 January 2015 and the respective Circular 2013/9 issued by the Swiss Financial Market Supervisory Authority ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only, not for onward distribution to any other person or entity.
The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
This financial promotion is issued by M&G International Investments S.A.