QIC Infrastructure has published a new paper about how to construct long-term infrastructure portfolios, The SOLID Building Blocks to Resilient Infrastructure Investment.
The report highlights five main topics — sector-centricity, operational value creation, long-term thematics, inflation and interest-rate protection, and deep diversification (SOLID).
“The SOLID framework focuses on fundamentals and sets a core foundation for infrastructure portfolios that aim to weather various market cycles while delivering consistent yield and growth,” notes QIC.
The paper reviews each of the five building blocks in separate reports, with the first being sector-centricity. “Sector-centricity can serve as an important source for value creation activities within an infrastructure portfolio,” the report explains. “Two primary examples of this are the deconstruction of sector value chains and the subsequent mapping of asset value drivers.”
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