Infrastructure Fund

Infrastructures are part of our day-to-day life, it consists in building (toll-) roads, motorway, port, airports, railways as well as the various public services in place to facilitate our lifestyle such as sewage services, electric network, internet network or transport method to transport goods from one country to another like trucks, tram, boats or planes.

Managers focusing on these specific sectors and industries will mainly invest into either new infrastructure projects directly, this can include tangible assets (train, boats, aircraft, ect..) or simply to invest in the financial instruments linked to existing infrastructure companies such as equities, bonds, derivative instruments, project bonds, etc…

The infrastructure funds generally consist in a long-term investment due to the nature of the project; indeed, an infrastructure project can generally last on average between 10 to 15 years before being sold, or made available to the public.

The attractiveness in such projects nowadays is further enhanced due to the sustainable and renewable aspects which make it the ideal investments for insurers, pensions funds or institutional investors. The infrastructure fund may indeed often be characterised as ‘green fund’.