One of the most important ingredients for a successful relationship is clear communication, whether it’s between parent and child, husband and wife, or investor and manager. In particular, clear communication can set expectations so that future events don’t create unpleasant surprises.
Infrastructure investing can be many things to many investors and managers, so it is imperative that the multitude of these investors and managers are clear on what each other’s objectives are and how they plan to achieve those.
At our I3 conference in June, a representative from the California Public Employees’ Retirement System made a comment that stood out to me. Randall Mullen, senior infrastructure portfolio manager at CalPERS, explained the retirement system’s risk-return spectrum for infrastructure ranges from defensive (lower risk/return) to defensive-plus (medium risk/return) and extended (higher r