Isn’t it striking that the factors driving inflation are also those supporting infrastructure? Many of us have been very focused on where the next inflation print will be. But there is also an intense debate about the new long-term equilibrium rate of #inflation. The concern is that re-onshoring will drive up costs, and that the net-zero transition will involve higher investment as well as costs (at least in the initial years, as energy costs may actually fall once lots of #renewable energy capacity is in place). The tight labour market may in part be structural in nature and linked to an evolving society where people want to work differently and labour supply is getting more limited. All of this may make it harder to get to 2% inflation and stay there. The hope is that #digitalisation will create a #productivity boom and offset some of these inflationary factors. But of course, to produce that tech-led productivity gain, big investment in #infrastructure will be needed, in data centres and digital infrastructure. The same can be said for new trade channels and increased local manufacturing capacity, which require more infrastructure investment to avoid the creation of new bottle-necks, which would be inflationary. And the net zero transition will require a multi-dimensional approach to electricity generation as #wind and #solar for example are intermittent. Interruptions would create more price spikes and more inflation. And it is clear that evolving societies – involving #urbanisation and ageing populations – need investment in smart cities, hospitals, waste and water. Our highly indebted governments have underinvested for years now and will more than welcome private sector investment to fill the funding gap. So investors can expect to negotiate attractive conditions. What’s more, if inflation stays somewhat higher than in the past, infrastructure typically offers inflation adjusted returns. The link to inflation can be regulatory in case of utilities, or contractual. It can also result from the importance of the service provided, which allows the operator to pass on any increase in costs. All of this suggests that infrastructure will see a huge amount of activity for many years to come, with an attractive risk/return profile for direct investments in infrastructure. To find out more, ask us about our ‘Infrastructure and Future Cities’ investment theme.

With inflation warm, #Nuveen suggests to consider infrastructure investments - and numbers indicate they could be right. #infrastructureinvestments #infrastructure #investment #strategy #220dots https://buff.ly/3SLsopV

Infrastructure assets are theoretically well-protected from high #Inflation thanks to their ability to pass on cost increases to customers as well as the inelastic demand for their services. But when inflation soared to a 30-year high in 2022, this theory was challenged. In our recent paper, “Did infrastructure weather the inflation storm,” we find that infrastructure not only made it through this inflationary period relatively unscathed, but emerged stronger, reinforcing its critical role in any diversified portfolio. Read the full paper here: https://bit.ly/3Yexq18

#Meridiam’s CEO Americas, Nicolas Rubio, was featured in P3 Bulletin discussing the positive #impact of the Inflation Reduction Act on #publicprivatepartnerships. He tells Jonathan Davies that opportunities are being created in the #US as a result of the new rules.     Rubio said: “The missing link was the guidelines, [which] seem to now be in place. It’s going to make a project feasible that would not have been feasible without it.” https://lnkd.in/e8K_Rune   #PublicPrivatePartnerships #Infrastructure #Sustainability

FROM THE CURRENT ISSUE: "Infrastructure as an asset class is generally resilient to the volatility of the economic cycle, which is one of the key reasons why investors allocate to it. Nevertheless, upcoming political events may determine the future trajectory of U.S. fiscal policy, which will likely have consequences for economic growth and inflation, influencing return expectations, and the positioning of infrastructure portfolios." Read InfraRed Capital Partners Ltd's Gianluca Minella's take on implications of the U.S. election in the November issue of i3, or click here.

In light of it being #election day, I think it is most appropriate to share this commentary featured in the November issue of i3, in which Gianluca Minella unpacks the potential implications of either a Democratic or Republican presidency on U.S. economics and infrastructure policy.

The #infrastructure sector continues to benefit from secular tailwinds such as the 4 Ds – decarbonization, #digitalization, deglobalization, and demographic change. We believe that infrastructure debt is in a unique position to take advantage of these long-term investment themes. Read more in our insights into private markets! https://bit.ly/3VEjufj #PrivateMarkets hastag#Infrastructure #Alternatives #AssetManagement #ShareUBS

Private infrastructure investments are increasingly gaining traction – and for many reasons. For example, some believe they are potentially less risky investments, especially during periods of higher #inflation. Furthermore, #infrastructure is receptive to many secular trends currently shaping the global economic scenario. Find out more, including how should investors approach this multi-faceted asset class https://bit.ly/47eNIuR #PrivateMarkets #AssetManagement #Alternatives #ShareUBS

Our Central government and state government Capex continue to remain healthy. The government this year will be investing about 10 lakh CR at Central level in infrastructure spending. Here's the chart. Click here to watch the video: https://bit.ly/3UebhPu #mutualfunds #marketoutlook #capex #infrastructure #investments

The capital investment outlay for infrastructure has surged by 11.1% to ₹11.11 lakh crore (US $133.86 billion), representing 3.4% of GDP. This significant increase marks a strategic move to bolster economic growth and infrastructure development. Stay informed and ahead of the curve with more insights with us. #InfrastructureInvestment #CarbyneInfrastructure #EconomicGrowth #CarbyneInfra #InvestmentInsights #GDPGrowth #Finance #Economy