Infrastructure is a long word but it pays predictable and growing cash flows. Everything that moves has to travel on infrastructure, and people are getting paid. Are you? Shouldn’t you?
Recall times you’ve paid to cross a bridge or enjoy a toll highway, used airports at home or abroad, spent quality time with your laptop or cell phone, and enjoyed the blessed comforts of home whether in the chilly darkness of winter or the hot blast of summer. These are things we take for granted, the stuff of everyday life. And you didn’t think you could get paid for it?
Global Infrastructure Income focuses on anything that moves people, products, essential services, and data. These are long-lasting assets. Some are securely government-regulated while others as “user pay” propel earnings even further in a rising economy.
When economies pause and stock markets tumble, people still use electric lights, natural gas, flights for business or pleasure, and freight is still moving from coast to coast and across oceans. Internet capacity keeps growing, data usage reaches new highs. Solar and wind energy are being harnessed. Waste treatment also rises, for more people (and rising affluence) creates more waste to be reduced and even reused as byproducts. Drinkable water supplies fit here too.
Global Infrastructure Income offers resilient and predictable cash flow, attractive yields, inflation protection, and continuing growth. That’s why our CPP has near 15% allocation to global infrastructure. You and I can do the same. It doesn’t guarantee growth every year, but it assures a smoother ride, a reliable income, indexed to grow naturally over the years ahead.
Years ago people could get 6-7% average returns just by combining an equity fund and a bond fund. Since then, stock markets have been even more volatile while bonds pay a miserly 0% to 3%. In the screaming roller-coaster of 2007-2009 stock markets fell >65% so it felt really good by comparison as infrastructure slid 15%, and then recovered with great speed because of its safety and growing yield.
Infrastructure gives a higher yield than bonds at a fraction of normal equity risk. To build wealth or draw a secure income-for-life, especially amid costs of growing older, this is vital to protect the lifestyle and comfort you deserve. For Life!
[…] Imagine reviewing your portfolio you see the Paris Airport Authority including a hub of three airports serving France and Europe. This is a valuable, prime, long term asset that you cannot pick up on a whim; it takes time and focus to build a position here, and as with all types of infrastructure assets (airports, railways, toll bridges and highways, pipelines, ports and telecommunications), you benefit with consistent and growing income. Regardless what calamity may arise we never sell off global infrastructure and the high income it keeps paying. (See Global Infrastructure) […]
[…] fearful. Consider it in terms of “real assets” (the hard tangible variety) and an example of infrastructure. Within our global portfolio we surely own renewable energy that nicely turns wind into […]