Can investors get big returns from listed infrastructure

Can investors get big returns from listed infrastructure? Andrew Maple-Brown says that when investing in listed infrastructure investors should be thinking about risk adjusted returns rather than outsized returns. Historically investments in infrastructure have been more volatile than fixed interest but less than general equities. In terms of returns Maple-Brown says they are targeting inflation plus around 5.5%. Given that lower volatility compared to general equities we think that's an attractive risk-adjusted return. Especially in this low interest rate environment. Other benefits highlighted are the relatively attractive yields, long dated and defensive cash flows, inflation protection which is often built into the securities and portfolio diversification. On the ASX, Maple-Brown highlights Transurban as one of their preferred exposures. In this video he discusses the outlook for the sector and how the sector has changed since the GFC where many stocks were hit extremely hard due to high debt burdens. Watch the video:

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