This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

J.P. Morgan Asset Management Says Opportunity In Core Infrastructure Is Too Good To Last

Stocks in this article: JPM

NEW YORK, May 2, 2013 /PRNewswire/ -- J.P. Morgan Asset Management asserts in a new research piece titled "Too Good to Last" that while investors are primarily drawn to infrastructure for its income and lower volatility, early movers are also likely to enjoy outsized capital appreciation over the near to mid-term as the demand for infrastructure assets grows. 

In this new report, Mark Weisdorf, portfolio manager, J.P. Morgan Asset Management OECD Infrastructure Equity, predicts that the early mover window will close over the course of the next few years, with discount rates compressing by 100 basis points or more.  He explains:

  • 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.

"We believe we are rapidly approaching a tipping point where institutional investors who are searching for income, frustrated by lackluster economic growth and dissatisfied with the volatility of public equity markets, will turn to infrastructure in larger numbers and with greater allocations," said Weisdorf.  "This move could result in discount rate compression, pushing asset values steadily higher.  We expect this to happen over the next two to three years, to the benefit of incumbent infrastructure investors." 

To read more about J.P. Morgan's view on this investment opportunity, please visit 

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs