SWFI Survey: Large Long-Term Asset Owners Cool on Listed Infrastructure

Sovereign wealth funds, public pensions, endowments and other asset owners have steadily increased allocation to infrastructure over the past six years, according to asset allocation data from SWFI. However, hundreds of billions of capital allocated to infrastructure remain idle. According to the third quarter 2017 Global Asset Owner Survey conducted by SWFI, a large number of respondents plan to underweight listed infrastructure in the next 12 months. Just about 92% of the respondents plan to either underweight, strongly underweight or hold their allocation to listed infrastructure, while the survey showed a desire for private infrastructure investing. The debate over public or private access to infrastructure remains a bit intense.

Given the recent quarterly survey demographics, SWFI concludes that more long-term institutional investors with access to talent and sizeable balance sheets prefer private infrastructure investing over listed infrastructure allocations at the moment. A possible concern for listed infrastructure are its correlations to U.S. equity markets, versus the pure play of infrastructure exposure, even when suitable deals are hard to find. Historically, listed infrastructure has exhibited equity-like returns, which can be a pro or con, depending on one’s portfolio preferences.

StepStone Group Quits CalPERS Infrastructure Role

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