The demand for air travel is on the rise: The past decade has seen exponential growth, with annual worldwide passenger numbers rising by 80 percent. This demand has resulted in a shift to the way investors view airports as an infrastructure asset class. Infrastructure investors are attracted to the rising cash flows, resilience to the economic cycle and potential gains at disposal, characteristics that are found in airports across the world. In spite of that, investors should take note of the differences in performance and cash flow resilience between the global hubs and regional airports.

It seems you cannot read a financial publication or report or hear speakers at a conference without a mention, and more likely much more than a mention, that investments should adhere to standards that promote environmental, social and governance, or ESG, goals. ESG is a trend that has arrived, with an increasing number of data and information providers offering reports and tools, including a new ESG scoring system launched in January by Fitch Ratings — the ESG Relevance Scores.

Since September 2018, equity markets have been signaling potential trouble ahead, but is that a sign of a sputtering economy or a shift in interest rate policy after a decade of low rates? The economy seems to be in stable shape with jobs numbers and growth remaining healthy, but interest rates continue to rise, and so it seems the latter is having more of an effect on markets. Public equity prices also usually lead valuations in private markets by months. If the volatility in the listed markets is in fact a preview of more to come, infrastructure investors are poised to learn the answer to the question — is infrastructure a defensive asset class?