Infrastructure as an Asset Class

EIB Papers, Vol. 15, No. 1, pp. 70-105, 2010

36 Pages Posted: 11 Jun 2011 Last revised: 1 Jul 2022

Date Written: June 9, 2011

Abstract

Infrastructure as a new asset class is said to have several distinct and attractive investment characteristics. This article reviews concepts, market developments and empirical evidence on the risk-return and cash flow profile, and the potential for diversification and inflation protection in investor portfolios. Furthermore, a new, global analysis of the historical performance of infrastructure funds is undertaken. There is no proper financial theory to back the proposition of infrastructure as a separate asset class. Infrastructure assets are very heterogeneous, and empirical evidence suggests an alternative proposition that treats infrastructure simply as a sub-asset class, or particular sectors, within the conventional financing vehicle on which it comes (e.g. listed and private equity, bonds).

Keywords: Infrastructure investment, Infrastructure fund, Alternative asset, Real asset, Asset allocation, Performance analysis

JEL Classification: G11, G15, G22, G23, H54

Suggested Citation

Inderst, Georg, Infrastructure as an Asset Class (June 9, 2011). EIB Papers, Vol. 15, No. 1, pp. 70-105, 2010, Available at SSRN: https://ssrn.com/abstract=1860947

Georg Inderst (Contact Author)

Inderst Advisory ( email )

4 Evangelist Road
GB London, NW5 1UB
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
3,217
Abstract Views
9,494
Rank
7,028
PlumX Metrics