Global Listed Infrastructure (GLI) is an asset class made up of publicly traded companies that own and/or operate the essential infrastructure facilities (bridges, tunnels, roadways, airports, seaports, energy and water utilities, etc.) functioning societies require and that enable global trade and growth.
According to some estimates, maintaining existing infrastructure and building new, modern facilities to meet the needs of the 21st century may require tens of trillions of dollars of investment capital over the next 10-15 years.1
We believe GLI offers investors a simple way to participate in what will likely be an attractive long-term opportunity, as well as a number of important potential advantages over private and/or direct infrastructure investment. These include:
- Daily liquidity, as securities trade on global equity exchanges.
- Diversification across global infrastructure assets.
- Low entry and exit costs.
- The ability of portfolio managers to move freely into and out of investments and reallocate to attractive opportunities that may arise.
GLI also offers investors the potential for stable long-term capital growth, inflation-linked income, and portfolio diversification.
Based on infrastructure’s demonstrated historical performance and fundamental characteristics, GLI may be an attractive asset class for investors seeking a complementary long-term growth alternative to traditional equity investments.
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1 Source: McKinsey estimates U.S. $57 trillion will be required for global infrastructure investment across 2013-2030. McKinsey Global Institute, “Infrastructure Productivity: How to Save $1 Trillion a Year,” 2013.↩
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These views represent the opinions of the Portfolio Manager at OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.
Special Risks: Securities of companies engaged in infrastructure businesses can be susceptible to adverse economic, regulatory, political, legal, and other changes affecting their industry. Small and mid-sized company stock is typically more volatile than that of larger company stock. It may take a substantial period of time to realize a gain on an investment in a small or mid-sized company, if any gain is realized at all. Emerging and developing market investments may be especially volatile. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks.