FT Adviser: How is infrastructure expected to perform in the future?
But Gavin Haynes, managing director at Whitechurch Securities, believes investors should brace themselves for lower returns from the asset class.
“Going forward, we do not expect to see the levels of returns achieved over the past five years based on current valuations,” he warns.
“Higher bond yields could prove to be a headwind and we believe that it will be important for managers to be selective and move away from expensive bond proxy areas to seek value.
“In an uncertain political backdrop, the risk of regulatory interference could also weigh on utilities.”
“We still believe that well diversified exposure to infrastructure, both globally and by sector, can provide attractive, income-focused returns,” he adds.
Full article available at FT Adviser: How is infrastructure expected to perform in the future?
Part of the FT Adviser: Guide to investing in infrastructure
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