Ana Balat Ana Balat


Current economic, geographical, and demographic trends encourage a high level of interest in investing into “real assets” such as commodity-related infrastructure. The trend may be viewed as investment on the rising consumption patters of emerging markets populations, whose combined consumption today not only exceeds that of the United States, but is also growing faster. Rapid urbanisation and decades of underinvestment, have set the stage for massive infrastructure investment in emerging markets and the number of listed and unlisted infrastructure funds has increased rapidly. Although investments in commodity-related infrastructure are susceptible to the risk of a slowing of economic growth (in particular in overweighed positions) and involve special risks such as currency fluctuation and less public disclosure, they provide some downside protection, increase diversification through low correlation with stocks and bonds, provide a potential hedge against inflation, and may help hedge against rising geopolitical tension and market distortions. Special focus is on energy-related infrastructure, transport, water and sewage, cement plants, agricultural supply chain, refineries, and fertiliser plants.