Unlisted Infrastructure investments are suitable for both individual and institutional investors seeking portfolio diversification, income stability, and exposure to long-term assets.
Unlisted Infrastructure Investing
Unlock Opportunities with Our Infrastructure Investments
What is unlisted infrastructure investing?
Unlisted infrastructure investing is a type of investment strategy that involves putting money into privately held or non-publicly traded infrastructure assets or projects. Infrastructure is a fundamental building block to the functioning of modern society and can include energy, transportation and communication networks and systems. Within the broad infrastructure investment universe, there exists what we call pure play infrastructure. Pure play infrastructure assets typically provide essential services, operate in monopoly-like competitive positions and enjoy sustainable cash flows producing reliable income streams. By way of example, we consider an airport to be a pure play infrastructure asset, as opposed to an airline. Another example would be a toll road, as opposed to a construction company that builds the toll road.
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.
Frequently-asked questions
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 often exhibit lower volatility, have longer investment horizons, and generate steady income streams compared to the more fluctuating returns of stocks and bonds.
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.
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.
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.
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.
Explore more alternative investment strategies
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Unlisted infrastructure videos
Russell Investments' Chairman and CEO, Zach Buchwald sits down for a conversation with Michael Steingold, CFA, Director of Private Markets, to get his perspective on how we're investing in infrastructure and its impact to our daily lives if we invest now.
Part 1: Infrastructure projects that will help create a more renewable world
Part 2: How investing in infrastructure now, will impact our daily lives in the future
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.
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Neil Rogan
Managing Director, Head of Distribution
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