7 May 2019

Strong macroeconomic fundamental trends are driving investment into Asia

7 May 2019

7th May, 2019

Our head of Data, Steven Hong participated in at the keynote and moderated an infrastructure debt panel at Infrastructure Investor’s Seoul and Tokyo Summit (The Summit).

The Summit is a dedicated private investor conference that promotes knowledge sharing on best practices and trends. Attended by Asia’s largest infrastructure investors such as Korea Investment Corporation, Government Pension Investment Fund and Dai-ichi life insurance, and investment managers such as Blackrock, IFM Investors and AMP Capital, the Summit focussed on the future of infrastructure for Asian investors. There was a particular focus on mid-market infrastructure, the energy transition towards renewables, and infrastructure debt.

Several themes were evident across the two events. Many institutional infrastructure investor’s investment horizon are long-term and are searching for investment duration. In doing so, they have increasingly recognised the importance of asset management expertise in order to realise long-term benefits to infrastructure, building internal expertise. Indeed the GI Hub recognised such a need, and have developed a reference guide for contract management.

International investment managers appear to be attracted to the Asian region because of the strong macroeconomic fundamental trends: strong and consistent GDP growth, rising middle class and average income levels, greater urbanisation, however recognise the diversity  of the countries.

Consistent with GI Hub’s infrastructure investor survey with EDHEC, the USA continues to be considered to be an attractive market because of the need to replace and improve existing infrastructure. Water in particular was identified as a significant sector of need, with many assets nearing the end of their useful life.