Listed infrastructure, like private infrastructure, classifies into four broad sectors namely Transportation (e.g. toll roads, airports, railways, seaports, bridges, ferries), Utilities (e.g. power transmission and distribution, oil and gas pipelines, water systems, waste collection and treatment, long-term contracted power generation), Communications (e.g. telecommunication towers, cable networks, satellite systems) and Social infrastructure (e.g. hospitals, schools, stadiums, prisons, courts, subsidized housing).
Infrastructure assets are typically characterized by capital intensity, long economic useful lives, high barriers of entry into the markets they serve, relative inelasticity of demand for their services and a high degree of regulatory control. These features make the returns of this asset class defensive in terms of sensitivity to economic cycles and also provide a degree of inflation protection as many infrastructure assets benefit from index-linked tariff structures. Hence, private infrastructure investments contain a distinctive risk/return profile that makes this asset class ideal to enhance diversification of existing portfolios.
Partners Group focuses on investments in asset owners and concessionaires and not on service providers, suppliers and capital goods manufacturers with a structured stock selection process. Partners Group’s listed infrastructure strategy aims to build a truly global diversified portfolio which mitigates risks, accesses subsectors and seeks growth opportunities on a global basis.
