As a real asset category, infrastructure offers risk, return and diversification characteristics distinct from those of other asset classes, and thus merits consideration for allocation in a diversified portfolio. Listed infrastructure investments generally feature steady cash flows derived from tangible, long-lived assets with monopolistic-like pricing power; many are regulated and may feature income linked directly to inflation.

This paper explores the structure of a listed infrastructure portfolio, including:  

  1. Rationale for inclusion in a portfolio and its distinction from other asset classes
  2. Liquidity, cash flow, and insights on model weights within the asset class
  3. Analysis about active management potential and common strategies

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