Geopolitical Risk Prompts Rush Into Infrastructure, IFM Says (1)

Heightened geopolitical risk and macroeconomic volatility are driving more and more fund managers to infrastructure investments as they look for long-term bets that can help diversify and hedge against inflation.

Allocations to infrastructure will grow by 20% over the next five years, according to a survey of 700 senior investment professionals by IFM Investors published Wednesday. The proportion of investors allocating to infrastructure is due to increase globally to 60% from 49% by 2030, the findings show.

Infrastructure investments such as toll roads, wind farms or fiber-optic cables typically operate on long-term contracts with inflation linked leases and operating agreements. ...