Building Portfolios with Infrastructure: Performance, Cash Flows & Portfolio Allocation

Abstract

Infrastructure is a growing asset class in institutional portfolios. But what are the implications for portfolio risk and liquidity? PGIM IAS explores the performance and cash flow properties of infrastructure investments, both at the asset and the fund level. The PGIM IAS’ asset-allocation framework (OASIS) is to determine the appropriate allocation to infrastructure and other illiquid investments (e.g., private equity) given a CIO’s liquidity risk tolerance.

Keywords: Megatrends, PGIM, Private Markets, Asset Allocation, Public Markets, Alternatives, Credit, Private Equity, Portfolio, Portfolio Implications, PGIM IAS, Infrastructure, liquidity, liquidity risk, illiquid investments