Macquarie Asset Management

Pathways Core Infrastructure

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Core infrastructure has been growing in popularity in recent years. New funds focused on this end of the infrastructure1 risk-return spectrum have been coming to market and assets under management (AUM) have increased rapidly since 2017. But we may be in only the early stages of what could be a long-term trend.

With interest rates at very low levels, and inflation risks on the rise, core infrastructure’s inflation hedge characteristics are providing potential new opportunities in the markets.

Shifting out of the risk curve

Core infrastructure as a potential inflation hedge

COVID-19 creates interesting entry points

Infrastructure’s AUM has grown at 16.7% since 2014

Did you know?

Between 2017 and 2019 core infrastructure AUM grew at an annualised rate of 19.4%, compared with 16.0% for infrastructure as a whole. It has been the fastest growing equity risk bucket within infrastructure.

Source: Preqin (March 2021).

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  1. Throughout the note when we mention infrastructure we are referring to unlisted infrastructure.