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Institutions piling into infrastructure across North America

Institutions piling into infrastructure across North America

June 10, 2019 01:00 AM

Energy, transportation see most attention; steady income a draw

Relatively new as an institutional asset class in the U.S., infrastructure is one of the fastest growing real asset classes in North America, albeit from a small base, industry insiders say.

Infrastructure, along with energy, exhibited the most growth of any private asset class among the largest 200 U.S. defined benefit plans in the year ended Sept. 30, according to Pensions & Investments' annual survey.

This trend is expected to continue as investors look for consistent income. Further underscoring the asset class, the Trump administration unveiled a plan as part of its 2019 budget proposal that it said would generate $1.5 trillion in public and private infrastructure investment during the next decade, according to the administration's Rebuilding America's Infrastructure fact sheet. However, the proposal does not include a funding source. In April, President Donald Trump and the Democratic leadership in Congress agreed to a $2 trillion infrastructure plan, but no bill is yet before Congress. And since much of the transportation-related infrastructure in the U.S. is owned by states and local municipalities, industry insiders do not think a federal infrastructure bill will expand the investment opportunity in a major way... FULL ARTICLE

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