Infrastructure
Infrastructure is a distinctive asset class in three ways (where the term infrastructure generally covers infrastructure and utility companies). Infrastructure has shown to deliver solid and stable earnings irrespective of economic conditions
Infrastructure assets typically face constant demand, limited competition and a stable regulatory environment. Infrastructure is thus well positioned to generate the reliable cash flows and stable earnings growth, no matter what economic conditions prevail. Infrastructure offers inflation protection
Infrastructure comes with natural or built-in protection against inflation because regulators typically allow these companies to raise their prices to protect their earnings when their costs rise. Infrastructure has lower risk of capital loss assets that have reliable earnings growth and stable income streams are typically havens sources of stability in times of market declines.