Infrastructure sector is ripe for investment and offers an inflation hedge and an alternative to unpredictable equities

by Meg Bratley

“Renewed stock market volatility as markets come to terms with the failure of Silicon Valley Bank and the bail out of Credit Suisse, and another spike in UK inflation show that economic and market volatility is far from over. Against this backdrop, alternative investments, such as infrastructure, have never looked more attractive, yet retail investors remain under-allocated in the sector,” says Andrew Gill, co-Fund Manager of the TIME:UK Infrastructure Income fund.

However, this is set to change according to a report1 by data provider Preqin which suggests that private capital assets under management (AUM) are set to double by 2027, fuelled partly by greater retail investor interest in alternatives.

UK Infrastructure investment is already attracting interest from retail investors, (In 2021, UK Infrastructure investments held by IA members stood at £40 billion)because it offers an alternative to the current unpredictable stock markets and for those looking for long-term inflation-linked assets that can help to diversify a portfolio and align with environmental, social, and economic considerations.

Furthermore, the sector is set to benefit from the UK Government’s record £650 billion infrastructure investment programme, and has, over the past five years, improved its regulation, transparency, and liquidity, increasingly making it an exciting investment opportunity for private investors3.

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