Of all the asset classes, ‘Infrastructure’ perhaps covers the widest range of possible investment opportunities, from shares in highly leveraged listed utility companies through to airports, trains and rolling stock and windfarms.
The combination of falling bond yields and larger deficits, coupled with negative cash flow places conflicting pressures on Irish pension schemes. Higher required returns favour growth assets, but Irish pension schemes with net cash outflow also need to generate income. How can Irish trustees use income from unlevered infrastructure equity assets to help resolve their funding conundrum? Sean McLachlan, Senior Investment Director, will talk through the characteristics that help to generate predictable, long term and inflation-linked income; what makes unlevered infrastructure equity an attractive asset class for Irish pension schemes and demonstrate how this can form part of their portfolio.