Category

Getting Real - Property

Company

Colonial First State

Research Paper

Infrastructure may be a new asset class in private hands, but many of the assets have long operating histories. This research paper presents evidence from recessions since the early 1970s to highlight the relative strength of the asset class and the pace at which earnings can rebound. It explains that infrastructure earnings are supported by essential or contracted demand, inflation-linked price increases and capex driven growth, and that robust earnings currently translate into dividend yields above 5% p.a with recent market volatility creating a unique opportunity for long-term investors to access these scarce assets at discounted prices.

Presentation

Peter Meany, Head of Global Infrastructure Securities, Colonial First State Global Asset Management