Global investor appetite for the expected long term global growth in infrastructure securities and the return potential associated with infrastructure assets has seen funds flow principally from Japanese and American retail investors and European, Canadian and American institutional investors.

AMP Capital Senior Analyst Sarah Shaw said the market is embracing global infrastructure securities as an asset class.

“The infrastructure securities asset class offers investors attractive fundamentals. With resilient earnings, strong corporate balance sheets and supporting yields the asset class is well positioned to provide investors stable and defensive returns despite on-going macro concerns and market volatility,” Ms Shaw said.

“We are very pleased to reach the $1 billion milestone for the AMP Capital global infrastructure securities capability, especially in such tough market conditions. Investors are increasingly attracted by the compelling investment case and the opportunities in global listed infrastructure securities.”

Globally it is estimated there is a $25 trillion gap between what is needed and the anticipated spending on infrastructure. In emerging markets the build-out of new infrastructure is driving growth and supporting domestic development, and in developed countries the focus is on the replacement of ageing assets and the expansion of existing infrastructure.

“Increasingly the onus is on the private sector to undertake infrastructure projects as governments come under increased budget constraints. Investors who provide capital for these essential services can be potentially rewarded with attractive investment returns,” Ms Shaw said.

The global infrastructure securities team focuses on stocks that generate the majority of income from the ownership and operation of infrastructure assets, in diverse infrastructure sectors such as energy, transportation, communication and water, across both developed and emerging markets.

Retail investors can access AMP Capital’s global infrastructure securities capability via the AMP Capital Global Infrastructure Securities Fund (hedged or unhedged). The Fund is Recommended by Lonsec and has a 3 star rating from Standard & Poor’s.

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