Today’s macro environment is characterized by record-breaking levels of inflation, central bank policy-tightening, and slowing economic growth across developing and advanced economies. This backdrop has had wide-ranging implications for individuals and businesses, as well as financial markets.
Amid the continuing macro and rate uncertainty, public markets have become increasingly volatile, with many investors searching for new opportunities and/or grappling with how to reallocate their portfolios.
During periods of elevated inflation, investments in real assets, including infrastructure, are seen to offer both “the opportunity for uncorrelated returns and competitive real return potential.” For example, in public real asset securities, such as listed infrastructure companies, listed real estate companies (REITs) and commodities, the rise in inflation has positively impacted returns, compared with global equities.
In addition, there is strong evidence priva