- Core infrastructure currently offers a return that appears more than commensurate with its relatively low risk profile, suggesting the returns may moderate as risk-return perceptions evolve.
- Demand from institutional investors is likely to increase since U.S. pension plans, more recent movers into the asset class, currently have average allocations of less than 1%, while many institutional investors outside the United States are below their larger target infrastructure allocations.
- The increase in supply of mature, "institutional-quality" core infrastructure assets is likely to lag the increase in demand, suggesting a near-term increase in the value of assets, compressing discount rates and future rates of return.
J.P. Morgan Asset Management Says Opportunity In Core Infrastructure Is Too Good To Last
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