Key benefits and risks
By definition, infrastructure assets are essential to the economic health and productivity of communities. We believe that they are also an essential component of a diversified investment portfolio. Investments in infrastructure typically exhibit low volatility and low correlation to the traditional asset classes of equity and fixed income. They also provide essential yield to investors and pure play access to developing economies.
Infrastructure: the foundation of any growing economy
Infrastructure assets provide essential services to society, such as the movement and storage of goods, people, data or resources. In many instances, these assets operate on a monopolistic basis. Some examples include:
- Regulated assets, including electricity transmission lines, gas and oil pipelines, water distribution systems, and wastewater collection and processing systems
- Power generation, including natural gas-fired power generation, wind and solar
- Transportation assets, including toll roads, bridges, tunnels, railroads, rapid transit links, seaports, and airports
- Communications assets, including radio and television broadcast towers, wireless communications towers, cable systems, and satellite networks
- Social infrastructure assets, including schools, hospitals, prisons, and courthouses
J.P. Morgan Asset Management believes that infrastructure assets are an essential component of a diversified investment portfolio. Direct investments in infrastructure typically exhibit low volatility and low correlation to the equity, fixed income and other real asset classes. To meet the needs of our investors, J.P. Morgan Asset Management has developed a $10 billion* infrastructure platform that spans geographies, debt and equity, and the risk-return spectrum. With local teams based out of New York, London, Hong Kong, Singapore and Mumbai, J.P. Morgan Asset Management is well-equipped to identify and pursue attractive infrastructure assets around the world.
RISKS: Real estate and infrastructure investing may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographical sector. Real estate and infrastructure investing may be subject to risks including, but not limited, decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrower.
* As of December 31, 2014
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