6 October 2020
6 Oct 2020
Infrastructure equities risk-return over 10 years
Source: MSCI, EDHECInfra, NYU
Infrastructure equities have an attractive risk-return profile providing a competitive alternative to other investment options.
Over the past ten years, publicly listed infrastructure equities have on average provided lower returns (6.7% p.a.) than global equities (9.7% p.a.) but with lower risk. Emerging markets listed infrastructure equity returns (2.2% p.a.) have underperformed global equity benchmarks and experienced higher volatility.
Unlisted infrastructure equities, generally offered through private placements, outperform listed global equities, both in terms of higher returns (14.6% p.a.) and lower risk.