Infrastructure is often associated with steadiness or consistency. But an investment in listed infrastructure can potentially offer much more, including benefits that we believe are well suited to today’s market environment: diversification and inflation hedging.
Not All Infrastructure is Created Equal
Infrastructure: The Backbone of Modern Society
From airports and cellphone towers to electricity networks and railways, infrastructure makes businesses and economies run. By investing in the publicly listed equity of companies that operate infrastructure, investors can gain exposure to predictable long-term earnings streams.
As a result, listed infrastructure can offer investors many potential benefits including:
- Diversification
- Low volatility
- Inflation hedging
- Income and capital preservation
- Liquidity
Pioneers in Listed Infrastructure
The Lazard Global Listed Infrastructure strategy launched in 2005 and has been managed by predominantly the same team ever since. Combining our preferred infrastructure approach with strict valuation discipline has been key to our successful long-term track record.
“Preferred Infrastructure” Is Pivotal to Our Approach
We tightly define our investment universe, which we call preferred infrastructure. It represents a narrow subset of the global infrastructure market that we believe has higher revenue predictability, profitability, and lower volatility. By rigorously applying our preferred infrastructure approach, we aim to provide investors with all of the potential benefits that infrastructure can offer.
Research & Insights
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Important Information
Securities and instruments of infrastructure companies are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including additional costs, competition, regulatory implications, and certain other factors.
This document reflects the views of Lazard Asset Management LLC or its affiliates ("Lazard") based upon information believed to be reliable as of the publication date. There is no guarantee that any forecast or opinion will be realized. This document is provided by Lazard for informational purposes only. Nothing herein constitutes investment advice or a recommendation relating to any security, commodity, derivative, investment management service, or investment product. Investments in securities, derivatives, and commodities involve risk, will fluctuate in price, and may result in losses. Certain assets held in Lazard’s investment portfolios, in particular alternative investment portfolios, can involve high degrees of risk and volatility when compared to other assets. Similarly, certain assets held in Lazard’s investment portfolios may trade in less liquid or efficient markets, which can affect investment performance. Past performance does not guarantee future results. The views expressed herein are subject to change, and may differ from the views of other Lazard investment professionals.
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