Accessing Infrastructure: Meeting the Challenge with an ETF
We expect infrastructure investing to continue expanding in the coming decades, but access can be challenging for many investors. Most liquid alternatives that seek to act as a proxy for the performance of this asset class are imperfect, with a high equity beta that renders them unsuitable to park ‘dry powder.’ An ETF provides a potential solution to these challenges.
Infrastructure assets represent the basic physical systems of a nation and therefore they are vital to a country’s economic development and prosperity. However, the Global Financial Crisis and, more recently, the coronavirus crisis have led to an imbalance between infrastructure needs and funding.
At a time when economies need it most, traditional sources of capital are under pressure. This is not merely a European problem — A McKinsey report from June 2016 estimated that global spending on infrastructure would need to rise from $2.5 trillion to $3.3 trillion per year until 2030 in order to keep up with demand. OECD estimates, noted in a June 2017 report, were even more aggressive, putting the projected annual figure at $6.3 trillion.*
Clickhere to read more about the future of infrastructure investing.
A Challenge and a Solution
Infrastructure offers investors a range of potential benefits. Most notably, the asset class provides the potential for long-term, steady returns and predictable cash flows (see Figure 1). However, many investors lack the scale to invest in unlisted infrastructure or directly into debt securities, making it difficult for smaller investors to gain exposure to infrastructure.
Figure 1: Infrastructure Investment Attributes
High barriers to entry: initial capital outlay and strict regulations
Revenue streams are protected
Toll roads, airports, railroads
Regulated utilities: electricity, gas, water
Oil & gas pipelines
Less sensitive to business cycle
Electricity, gas, water
Predictable Long-Term Returns
Assets are long-lived
Steady user demand
Reliable cash flows
Regulated utilities: electricity, gas, water
Oil & gas pipelines
Real assets: long-term asset appreciation, in line with inflation
Concessions permitting rent escalations linked to inflation
Toll roads, airports, railroads
Regulated utilities: electricity, gas, water
Source: State Street Global Advisors.
ETFs provide one way to address this challenge by offering a regulated, open-ended vehicle to access infrastructure. A liquid ETF also helps larger investors, who could access direct infrastructure, by providing a temporary home for committed, but uncalled, capital (i.e. dry powder). An ETF structure does not offer a like-for-like substitute for long-duration infrastructure exposure, but low capital requirements and high liquidity and diversification make it a relatively attractive addition to the infrastructure toolkit in any portfolio.
An ETF vehicle allows investors to potentially benefit from a risk-adjusted return profile that resembles direct investment in the underlying asset, but without the liquidity and cost issues otherwise associated with direct infrastructure investment.
How to Access this Theme
The SPDR Morningstar Multi-Asset Global Infrastructure UCITS ETF can provide investors with an avenue for accessing the infrastructure asset class. To learn more about the ETF, and to view a full performance history, please click here .
*The above targets are estimates based on certain assumptions and analysis. There is no guarantee that the estimates will be achieved.
Marketing Communication. For Professional Client Use Only.
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Informations relatives au Mexique
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OPCVM SPDR ETFs
SPDR ETFs Europe I Plc et SSGA SPDR ETFs Europe II Plc émettent les ETF SPDR et sont une société d’investissement à capital variable et à compartiments assortis d’une responsabilité séparée. La Société est structurée comme un Organisme de placement collectif en valeurs mobilières (OPCVM) conformément à la législation irlandaise et agréée en qualité d’OPCVM par la Banque centrale d’Irlande.
Ce site web s'adresse uniquement aux investisseurs qualifiés, tels que définis par l'article 10 (3) et (3ter), de la loi suisse sur les placements collectifs de capitaux (« LPCC ») et son ordonnance d'application. Certains fonds peuvent ne pas être enregistrés pour la distribution publique auprès de l'Autorité fédérale de surveillance des marchés financiers (FINMA), qui agit en tant qu'autorité de surveillance en matière de fonds de placement, ou peuvent ne pas avoir désigné de représentant et d'agent payeur suisse. Pour les fonds qui ont désigné un représentant et un agent payeur, les investisseurs intéressés peuvent obtenir les prospectus, les statuts, les DICI ainsi que les derniers rapports annuels ou semestriels disponibles gratuitement auprès du représentant et agent payeur suisse, State Street Bank International GmbH, Munich, succursale de Zurich, Beethovenstrasse 19, 8027 Zurich, ou sur le site https://www.ssga.com, ainsi qu’auprès du distributeur principal en Suisse, State Street Global Advisors AG (« SSGA AG »), Beethovenstrasse 19, 8027 Zurich. Pour les fonds qui n'ont pas désigné de représentant ni d'agent payeur en Suisse, veuillez noter que les fonds sont ouverts aux investisseurs qualifiés, à l'exclusion des investisseurs qualifiés bénéficiant d'une clause d'exclusion (« opting-out ») conformément à l'art. 5(1) de la loi fédérale suisse sur les services financiers (« FinSA ») et sans aucune relation de gestion de portefeuille ou de conseil avec un intermédiaire financier conformément à l'article 10(3ter) de la LPCC (« Investisseurs Qualifiés Exclus »). Pour obtenir plus d'informations et les documents relatifs au fonds, veuillez contacter SSGA AG.
Vous devez vous procurer et lire le prospectus et le document d'information clé pour l'investisseur (DICI) de SPDR avant d’investir. Ils sont disponibles en cliquant ici. Ceux-ci comprennent des informations complémentaires concernant les fonds SPDR, y compris des informations relatives aux coûts, aux risques et où les fonds sont autorisés à la vente.
ETFs SPDR américains
La distribution des intérêts des ETF SPDR américains en Suisse sera exclusivement faite à des investisseurs qualifiés et s'adressera uniquement à ceux-ci, tels que définis par l'article 10(3) et (3ter), de la loi suisse sur les placements collectifs de capitaux (« LPCC ») et son ordonnance d'application. Par conséquent, les ETF SPDR américains ne sont pas enregistrés pour une distribution publique auprès de l'Autorité fédérale de surveillance des marchés financiers (« FINMA »). Certains fonds peuvent ne pas avoir désigné de représentant et d'agent payeur suisse. Pour les fonds avec un représentant et un agent payeur suisse, les investisseurs intéressés peuvent obtenir les documents juridiques liés aux ETFs SPDR américains gratuitement auprès du représentant et agent payeur suisse, State Street Bank International GmbH, Munich, succursale de Zurich, Beethovenstrasse 19, 8027 Zurich, ou sur le site https://www.ssga.com, ainsi qu’auprès du distributeur principal en Suisse, State Street Global Advisors AG (« SSGA AG »), Beethovenstrasse 19, 8027 Zurich. Pour les fonds sans représentant ni agent payeur suisse, veuillez noter que les fonds sont ouverts aux investisseurs qualifiés, à l'exclusion des investisseurs qualifiés ayant une clause d’exclusion (« opting-out ») conformément à l'art. 5(1) de la loi fédérale suisse sur les services financiers (« FinSA ») et sans relation de gestion de portefeuille ou de conseil avec un intermédiaire financier conformément à l'article 10 (3ter) de la LPCC (« Investisseurs Qualifiés Exclus »). Pour obtenir plus d'informations et les documents relatifs au fonds, veuillez contacter SSGA AG.
Avant d’investir, il convient d’analyser les objectifs d’investissement, les risques, les frais et les dépenses des fonds. Pour obtenir un prospectus contenant ces informations et d'autres, téléchargez le ici ou adressez-vous à votre conseiller financier. Lisez-le attentivement avant d'investir.