IFM Investors Releases Global Infrastructure Sector Outlook Report

IFM Investors Japan Pty Ltd.
IFM Investors Releases Global Infrastructure Sector Outlook Report Infrastructure investment provides resilience in the current economic environment

Pension-fund-owned IFM Investors, one of the world’s largest infrastructure investors, says in its latest report, Infrastructure Sector Outlook 2023, that one of the key trends is amid heightened uncertainty in the global economy. cited the resilience of their infrastructure investments (equity and debt). This report also discusses the fact that Russia’s invasion of Ukraine has renewed interest in energy security and the energy transition (transition), and that social factors such as inclusion & diversity (I&D) and worker safety are considered in investment decisions. We also highlight the investment opportunities presented by their increasing importance. This report highlights and examines five key themes that IFM believes will shape the infrastructure market over the next year:
Infrastructure resilience in times of economic turmoil: The
infrastructure asset class is not immune to challenges posed by an increasingly challenging macroeconomic environment, including ongoing political and economic instability. We expect 2023 to continue to demonstrate resilience across key sectors, driven by strong
correlations and stable demand profiles. Demands on infrastructure are now at or above pre-pandemic levels in many areas.
Infrastructure allocations will continue to grow: Institutional investors’ outsourced infrastructure allocations will grow from US$300 billion globally to more than US$700 billion over the six years to 2021, , we expect the current macroeconomic environment to provide additional tailwinds. We see the greatest potential, especially among pension funds and institutional investors around the world, whose allocations to infrastructure remain below target.
The impact of energy security on the energy transition: Russia’s invasion of Ukraine has refocused energy security, especially in Europe, and led to friend-shoring, where certain regions benefit. building a limited supply chain) tends to spread. Over the long term, these developments will accelerate the energy transition and create excellent investment opportunities over the next 12 months.
Strong tailwinds for infrastructure debt investment: There are also two permanent tailwinds boosting infrastructure deals – robust infrastructure investment by governments and the massive investment needed for the global economy’s energy transition. We see asset class resilience as a key theme for the year ahead.
The rise of the ‘S’ in ESG: In 2023, investors are expected to focus more on assessing and managing societal issues such as labor standards and conditions and supply chain risks. Employee safety and I&D are two key areas that infrastructure investors will focus on over the next 12 months and could influence their investment decisions, the report notes.
You can read IFM Investors’ second report, Infrastructure Outlook, here: Kyle Mangini, Global Head of Infrastructure Operations at IFM Investors, said: “The global economic environment is challenging for investors, but the infrastructure asset class offers investors resilience in the face of rising inflation and interest rates, slowing economic growth, and geopolitical and economic uncertainty. We believe that it has the characteristics to
Infrastructure assets have demonstrated strong resilience across sectors, with a positive correlation to inflation and stable real demand, creating a supportive environment for infrastructure equity and infrastructure debt investment.
The infrastructure equity and infrastructure debt sectors will also benefit from tailwinds from the energy transition as governments grapple with the critical task of building the infrastructure that communities need in 2030, 2050 and beyond. I’m here.
Over the next 12 months, we believe social factors will receive increasing attention as investors become more sensitive to the social issues that need to be addressed in order to meet their environmental goals. ”
About IFM Investors
IFM Investors was founded over 25 years ago to protect and grow people’s retirement finances over the long term. As of December 31, 2022, it has A$211 billion in assets under management with multiple Australian pension funds as shareholders. An industry pension fund-owned manager, IFM Investors focuses on assets with superior long-term risk/return profiles that deliver broad economic and social benefits to local communities. We prioritize the interests of our 640+ investors around the world who share our vision. IFM is a signatory to the UN-backed Principles for Responsible Investment and actively engages with investee companies on ESG issues, aiming to improve net performance while minimizing investment risk. With offices in Melbourne, Sydney, London, Berlin, Zurich, Amsterdam, New York, Hong Kong, Seoul and Tokyo, the firm operates globally and manages infrastructure, debt, public equity and private equity assets. increase. For more information, please visit Details about this release:

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