This chapter discusses infrastructure investments, which are long-term, buy-and-hold investments into long-term projects such as transportation, telecommunications, utilities, energy, healthcare, and educational facilities. Exposure to infrastructure can be attained via investment vehicles such as unlisted infrastructure funds, listed infrastructure funds, publicly traded infrastructure companies and municipal bonds earmarked to infrastructure projects. Infrastructure investment strategies include improving risk-adjusted returns of traditional portfolios containing assets such as stocks and bonds, using infrastructure assets for inflation hedging somewhat akin to using real estate investments for this purpose, and generating stable cash flows from “brownfield” (as opposed to “greenfield”) infrastructure projects associated with established assets in need of improvement, which can further benefit from diversification across different economic sectors.


Infrastructure investments Buy-and-hold investments Transportation Telecommunications Utilities Energy Healthcare Educational facilities Investment vehicles Unlisted infrastructure funds Listed Infrastructure Funds Infrastructure companies Municipal bonds Infrastructure projects Risk-adjusted return Traditional portfolio Inflation hedging Cash flows “Brownfield” projects “Greenfield” projects Diversification Tracking ETF 


  1. Ansar, A., Flyvbjerg, B., Budzier, A., & Lunn, D. (2016). Does Infrastructure Investment Lead to Economic Growth or Economic Fragility? Evidence from China. Oxford Review of Economic Policy, 32(3), 360–390.CrossRefGoogle Scholar
  2. Arezki, R., & Sy, A. (2016). Financing Africa’s Infrastructure Deficit: From Development Banking to Long-Term Investing. Journal of African Economies, 25(S2), 59–73.CrossRefGoogle Scholar
  3. Armann, V., & Weisdorf, M. (2008). Hedging Inflation with Infrastructure Assets. In B. Benaben & S. Goldenberg (Eds.), Inflation Risk and Products: The Complete Guide (pp. 111–126). London, UK: Risk Books.Google Scholar
  4. Bird, R., Liem, H., & Thorp, S. (2014). Infrastructure: Real Assets and Real Returns. European Financial Management, 20(4), 802–824.CrossRefGoogle Scholar
  5. Bitsch, F., Buchner, A., & Kaserer, C. (2010). Risk, Return and Cash Flow Characteristics of Infrastructure Fund Investments. EIB Papers, 15(1), 106–136.Google Scholar
  6. Blanc-Brude, F., Hasan, M., & Whittaker, T. (2016). Benchmarking Infrastructure Project Finance: Objectives, Roadmap, and Recent Progress. Journal of Alternative Investments, 19(2), 7–18.CrossRefGoogle Scholar
  7. Blanc-Brude, F., Whittaker, T., & Wilde, S. (2017). Searching for a Listed Infrastructure Asset Class Using Mean-Variance Spanning. Financial Markets and Portfolio Management, 31(2), 137–179.CrossRefGoogle Scholar
  8. Blundell, L. (2006). Infrastructure Investment: On the Up. Property Australia, 20(9), 20–22.Google Scholar
  9. Clark, G. L. (2017). Financial Intermediation, Infrastructure Investment and Regional Growth. Area Development and Policy, 2(3), 217–236.CrossRefGoogle Scholar
  10. Clark, G. L., Monk, A. H. B., Orr, R., & Scott, W. (2012). The New Era of Infrastructure Investing. Pensions: An International Journal, 17(2), 103–111.CrossRefGoogle Scholar
  11. Dechant, T., & Finkenzeller, K. (2013). How Much into Infrastructure? Evidence from Dynamic Asset Allocation. Journal of Property Research, 30(2), 103–127.CrossRefGoogle Scholar
  12. Espinoza, R. D., & Luccioni, L. (2002). Proper Risk Management: The Key To Successful Brownfield Development. WIT Transactions on Ecology and the Environment, 55, 297–306.Google Scholar
  13. Finkenzeller, K., Dechant, T., & Schäfers, W. (2010). Infrastructure: A New Dimension of Real Estate? An Asset Allocation Analysis. Journal of Property Investment & Finance, 28(4), 263–274.CrossRefGoogle Scholar
  14. Grigg, N. S. (2010). Infrastructure Finance: The Business of Infrastructure for a Sustainable Future. Hoboken, NJ: Wiley.CrossRefGoogle Scholar
  15. Grimsey, D., & Lewis, M. K. (2002). Evaluating the Risks of Public Private Partnerships for Infrastructure Projects. International Journal of Project Management, 20(2), 107–118.CrossRefGoogle Scholar
  16. Haran, M., Newell, G., Adair, A., McGreal, S., & Berry, J. (2011). The Performance of UK Regeneration Property Within a Mixed Asset Portfolio. Journal of Property Research, 28(1), 75–95.CrossRefGoogle Scholar
  17. Hartigan, L. R., Prasad, R., & De Francesco, A. J. (2011). Constructing an Investment Return Series for the UK Unlisted Infrastructure Market: Estimation and Application. Journal of Property Research, 28(1), 35–58.CrossRefGoogle Scholar
  18. Helm, D. (2009). Infrastructure Investment, the Cost of Capital, and Regulation: An Assessment. Oxford Review of Economic Policy, 25(3), 307–326.CrossRefGoogle Scholar
  19. Helm, D., & Tindall, T. (2009). The Evolution of Infrastructure and Utility Ownership and Its Implications. Oxford Review of Economic Policy, 25(3), 411–434.CrossRefGoogle Scholar
  20. Herranz-Loncán, A. (2007). Infrastructure Investment and Spanish Economic Growth, 1850–1935. Explorations in Economic History, 44(3), 452–468.CrossRefGoogle Scholar
  21. Inderst, G. (2010a). Infrastructure as an Asset Class. EIB Papers, 15(1), 70–105.Google Scholar
  22. Inderst, G. (2010b). Pension Fund Investment in Infrastructure: What Have We Learnt? Pensions: An International Journal, 15(2), 89–99.CrossRefGoogle Scholar
  23. Joshi, N. N., & Lambert, J. H. (2011). Diversification of Infrastructure Projects for Emergent and Unknown Non-systematic Risks. Journal of Risk Research, 14(6), 717–733.CrossRefGoogle Scholar
  24. Leigland, J. (2018). Changing Perceptions of PPP Risk and Return: The Case of Brownfield Concessions. Journal of Structured Finance, 23(4), 47–56.CrossRefGoogle Scholar
  25. Martin, G. (2010). The Long-Horizon Benefits of Traditional and New Real Assets in the Institutional Portfolio. Journal of Alternative Investments, 13(1), 6–29.CrossRefGoogle Scholar
  26. McDevitt, D., & Kirwan, J. (2008). Corporate and Infrastructure-Backed Inflation-Linked Bonds. In B. Benaben & S. Goldenberg (Eds.), Inflation Risk and Products: The Complete Guide (pp. 621–641). London, UK: Risk Books.Google Scholar
  27. Nartea, G., & Eves, C. (2010). Role of Farm Real Estate in a Globally Diversified Asset Portfolio. Journal of Property Investment & Finance, 28(3), 198–220.CrossRefGoogle Scholar
  28. Newell, G., Chau, K. W., & Wong, S. K. (2009). The Significance and Performance of Infrastructure in China. Journal of Property Investment & Finance, 27(2), 180–202.CrossRefGoogle Scholar
  29. Newell, G., & Peng, H. W. (2008). The Role of US Infrastructure in Investment Portfolios. Journal of Real Estate Portfolio Management, 14(1), 21–34.Google Scholar
  30. Newell, G., Peng, H. W., & De Francesco, A. (2011). The Performance of Unlisted Infrastructure in Investment Portfolios. Journal of Property Research, 28(1), 59–74.CrossRefGoogle Scholar
  31. Oyedele, J. B., Adair, A., & McGreal, S. (2014). Performance of Global Listed Infrastructure Investment in a Mixed Asset Portfolio. Journal of Property Research, 31(1), 1–25.CrossRefGoogle Scholar
  32. Panayiotou, A., & Medda, F. R. (2014). Attracting Private Sector Participation in Transport Investment. Procedia—Social and Behavioral Sciences, 111, 424–431.CrossRefGoogle Scholar
  33. Panayiotou, A., & Medda, F. R. (2016). Portfolio of Infrastructure Investments: Analysis of European Infrastructure. Journal of Infrastructure Systems, 22(3), 04016011.CrossRefGoogle Scholar
  34. Peng, H. W., & Newell, G. (2007). The Significance of Infrastructure in Australian Investment Portfolios. Pacific Rim Property Research Journal, 13(4), 423–450.CrossRefGoogle Scholar
  35. Ramamurti, R., & Doh, J. (2004). Rethinking Foreign Infrastructure Investment in Developing Countries. Journal of World Business, 39(2), 151–167.CrossRefGoogle Scholar
  36. Rickards, D. (2008). Global Infrastructure—A Growth Story. In H. Davis (Ed.), Infrastructure Finance: Trends and Techniques (pp. 1–47). London, UK: Euromoney Books.Google Scholar
  37. Rödel, M., & Rothballer, C. (2012). Infrastructure as Hedge Against Inflation—Fact or Fantasy? Journal of Alternative Investments, 15(1), 110–123.CrossRefGoogle Scholar
  38. Rothballer, C., & Kaserer, C. (2012). The Risk Profile of Infrastructure Investments: Challenging Conventional Wisdom. Journal of Structured Finance, 18(2), 95–109.CrossRefGoogle Scholar
  39. Sanchez-Robles, B. (1998). Infrastructure Investment and Growth: Some Empirical Evidence. Contemporary Economic Policy, 16(1), 98–108.CrossRefGoogle Scholar
  40. Sawant, R. J. (2010a). Infrastructure Investing: Managing Risks & Rewards for Pensions, Insurance Companies & Endowments. Hoboken, NJ: Wiley.CrossRefGoogle Scholar
  41. Sawant, R. J. (2010b). Emerging Market Infrastructure Project Bonds: Their Risks and Returns. Journal of Structured Finance, 15(4), 75–83.CrossRefGoogle Scholar
  42. Singhal, S., Newell, G., & Nguyen, T. K. (2011). The Significance and Performance of Infrastructure in India. Journal of Property Research, 28(1), 15–34.CrossRefGoogle Scholar
  43. Smit, H. T. J., & Trigeorgis, L. (2009). Valuing Infrastructure Investment: An Option Games Approach. California Management Review, 51(2), 82–104.CrossRefGoogle Scholar
  44. Torrance, M. I. (2007). The Power of Governance in Financial Relationships: Governing Tensions in Exotic Infrastructure Territory. Growth and Change, 38(4), 671–695.CrossRefGoogle Scholar
  45. Vives, A. (1999). Pension Funds in Infrastructure Project Finance: Regulations and Instrument Design. Journal of Structured Finance, 5(2), 37–52.CrossRefGoogle Scholar
  46. Weber, B. R., Adair, A., & McGreal, S. (2008). Solutions to the Five Key Brownfield Valuation Problems. Journal of Property Investment & Finance, 26(1), 8–37.CrossRefGoogle Scholar
  47. Weber, B. R., Staub-Bisang, M., & Alfen, H. W. (2016). Infrastructure as an Asset Class: Investment Strategy, Sustainability, Project Finance and PPP. Chichester, UK: Wiley.CrossRefGoogle Scholar
  48. Wurstbauer, D., Lang, S., Rothballer, C., & Schäfers, W. (2016). Can Common Risk Factors Explain Infrastructure Equity Returns? Evidence from European Capital Markets. Journal of Property Research, 33(2), 97–120.CrossRefGoogle Scholar
  49. Wurstbauer, D., & Schäfers, W. (2015). Inflation Hedging and Protection Characteristics of Infrastructure and Real Estate Assets. Journal of Property Investment & Finance, 33(1), 19–44.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Quantigic Solutions LLCStamfordUSA
  2. 2.Universidad del CEMABuenos AiresArgentina

Personalised recommendations