Infrastructure: An Emerging Real Return Asset Class
Increased institutional investor interest in infrastructure is driven by cyclical and structural aspects. Cyclically, investors are facing an uncertain economic outlook and are seeking opportunities to diversify risk and return drivers. Structurally, National Budgets are also constrained, and thus, looking forward, the demands of fiscal consolidation suggest increased infrastructure investment is needed from pension funds and private institutional investors.
In the investment context, infrastructure typically includes economic infrastructure:
Lately however, the definition has broadened to include social infrastructure, which includes:
The Benefits of Investing In Infrastructure
The world over, energy security has taken on an exciting dimension relating to the deployment of clean and renewable energy and South Africa is leading the way in SADC and Africa. South African institutional investors, are either not yet invested or are below their target allocation owing to the lack of: available investment vehicles, private infrastructure investment opportunities and investor education. Bayakha therefore provides a response to this allocation challenge, providing access to high-quality assets that deliver all the benefits of Infrastructure Investments.