Listed Infrastructure

Over the past decade, infrastructure has established itself as a critical asset class for investors, supported by compelling investment properties and significant diversification potential. Its role as a natural hedge against inflation and its ability to deliver stable, predictable cash flows have made it an increasingly attractive option for portfolio optimization. Moreover, the growing privatization of public infrastructure has produced a larger universe of listed infrastructure companies, providing investors with straightforward access through the purchase of shares.

A key challenge in this space lies in defining and identifying a global universe of infrastructure companies. LPX AG addresses this by employing a proprietary classification system focused on core infrastructure companies—those that own or operate physical infrastructure networks. Empirical research indicates that the inclusion of basic infrastructure, characterized by natural monopolies and long-term stability, is essential to accurately reflect the risk and return profile of the infrastructure asset class.

As global demand for infrastructure surges in response to urbanization, technological advancements, and sustainability imperatives, basic infrastructure stands out as a pillar of economic and societal development. Its enduring strategic importance, resilient income streams, and natural monopoly characteristics make it an attractive and enduring component of a well-diversified investment portfolio.