Unlisted Infrastructure Investing
Unlock Opportunities with Our Infrastructure Investments
What is Unlisted Infrastructure Investing?
Today, infrastructure is recognised by the institutional investment community as a stand-alone asset class. To wit, many pension plans around the world have been attracted to the infrastructure asset class since the early 1990s.
We recognize the money we manage represents the hard work and savings of real people like you. Or, if you represent a non-profit organization, the money needs to be there in the long run to fulfill important missions. We understand what’s at stake. That’s why we work to deliver real, lasting value. And that's why we're committed to our purpose: improving financial security for people.
Why choose Russell Investments for infrastructure?
We manage global listed infrastructure investments for clients around the world. We offer:
- Capital markets expertise,
- Rigorous due diligence of the global manager universe,
- Multi-manager portfolio construction, incorporating risk management and diversification for investors, and
- Efficient implementation of investment strategy.
Benefits of investing in unlisted infrastructure:
Diversification
As a real asset category, infrastructure offers a distinct risk, return and diversification profile relative to other asset classes, and thus merits consideration for a discrete allocation in a diversified portfolio.
Income generation
Infrastructure investments typically feature steady cash flows derived from tangible, long-life assets with monopoly-like pricing power; many are regulated and may feature income linked directly to inflation.
Long-term return potential
"Pure play" infrastructure assets—which include toll roads, regulated utilities, airports, seaports and cell towers—are essential to the fluid, effective functioning of societies, and accordingly they have highly inelastic demand patterns.
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Frequently Asked Questions:
Unlisted infrastructure investing involves allocating capital to projects or assets that support essential services and physical structures such as transportation, utilities, energy, communication, and social infrastructure.
Investing in unlisted infrastructure can be beneficial as it offers the potential for stable returns, long-term income streams, and the opportunity to contribute to critical developments that benefit society.
Investing in unlisted infrastructure assets can provide a hedge against inflation, low correlation with traditional asset classes, and exposure to essential services that are less sensitive to economic cycles.
Unlisted infrastructure assets include toll roads, bridges, airports, ports, power plants, water utilities, renewable energy projects, telecommunications networks, and social infrastructure like schools and hospitals.
Unlisted infrastructure investments often exhibit lower volatility, have longer investment horizons, and generate steady income streams compared to the more fluctuating returns of stocks and bonds.
The potential benefits of unlisted infrastructure investing include stable cash flows, lower sensitivity to market volatility, potential tax advantages, and the ability to participate in essential service provision.
Risks in unlisted infrastructure investing may include regulatory changes, political uncertainties, interest rate fluctuations, construction and operational risks, and potential changes in demand for services.
Unlisted infrastructure investments often involve long-term contracts, concession agreements, or regulatory frameworks that provide a degree of revenue predictability, contributing to stable returns.
Unlisted Infrastructure investments are suitable for both individual and institutional investors seeking portfolio diversification, income stability, and exposure to long-term assets.
Unlisted infrastructure assets are usually managed by professional asset managers or specialized firms, and key stakeholders include operators, regulatory authorities, investors, and local communities.
Successful unlisted infrastructure investment opportunities include toll roads with steady traffic, renewable energy projects with stable cash flows, and well-managed water utilities meeting essential needs.
Explore our array of alternative investment strategies:
For investment solutions that are built to deliver your desired outcomes, access our innovative range of multi-asset products to address your portfolio needs.
Any opinion expressed is that of Russell Investments, is not a statement of fact, is subject to change and does not constitute investment advice.
The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
There are no assurances that the investment goals and objectives stated in this material will be met.
Investments in private market securities are generally illiquid as such investments are neither tradable on any exchange or in the secondary market nor would they be transferrable.Applications for shares in the fund are subject to the terms and conditions set out in the fund’s prospectus, Key Investor Information Document (KIID), memorandum and articles of association. Investors and potential investors are advised to read these documents (and in particular the risk warnings), as well as the further information contained in the annual and half-yearly reports before making an investment.
A chat with Zach
Russell Investments' Chairman and CEO, Zach Buchwald, sat down with Michael Steingold, CFA, Director of Private Markets, to get his perspective on how infrastructure is evolving and whether it's an option for retail investors and large institutions.
Partner with us
We'd love to talk.
Please reach out to me directly or send an email to connect.
Oscar Lonergan Corti
Institutional Partnerships Manager