The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results.
Source: Bloomberg, Barclays. EDHEC for Infrastructure equity; NCREIF for Global Real Estate; MSCI for Global Equities; and BBG Barclays Global Aggregate Index TR for Global fixed income, as of May 22, 2023 (annual data since 2001). The charts are based on an illustrative US economic scenario. Past performance is not indicative of future results. You cannot invest directly in an unmanaged index. High growth periods are when U.S. GDP > 2.5% and Low growth periods are when U.S. GDP < 2.5%. High inflation periods are when U.S. CPI > 2.5%.
Portfolio positioning
Unlocking the power of infrastructure assets
In a market regime of higher macro and market volatility, infrastructure assets are poised to offer stable returns, inflation protection, diversification benefits and an opportunity to drive the energy transition forward.
Resilient returns over time
Potential to deliver stable income and a return premium over fixed income and equities across different market cycles for the long-term
Inflation protection
Explicit and implicit linkages to inflation strengthen portfolio performance during high inflation environments
Diversification benefits
Offers diversification in periods of market volatility due to its idiosyncratic risk characteristics and low correlation to other asset classes
The energy transition
The transition to a low-carbon economy is driving a surge in infrastructure investment.
Infrastructure as a potential inflation hedge
Living with inflation
Staying ahead of inflation with infrastructure assets
Infrastructure is a unique asset class with characteristics that can provide resilience in the current rising rate and high inflationary macroeconomic environment.
Historical infrastructure outperforms during high inflationary times
The returns of private infrastructure companies tracked in the EDHEC 300 index increased by 23% through low growth and high inflation scenarios.
Explicit linkages to inflation
Infrastructure assets have long-term revenues that are often contracted or regulated in nature, with examples including power purchase agreements (“PPAs”) or take-or-pay contracts.
Building more resilient portfolios
A dedicated infrastructure position, held as part of a broadly diversified long-term portfolio, has the potential to increase both the efficiency and durability of the portfolio’s returns.
Equity and fixed income relationship
The Great Moderation saw long-term bonds work as a cushion against risk asset selloffs. We think this era is over and strategic infrastructure allocations can help make portfolios more resilient.
Low correlation to other asset classesInfrastructure equity exhibits low correlation to traditional asset classes due to its idiosyncratic characteristics.
Diversification benefits.Our research finds that adding infrastructure to a traditional 60/40 portfolio, could increase returns while diversifying risk. The optimal portfolio allocation has a 35% exposure to infrastructure.
The New Infrastructure Blueprint
We explore the major structural forces driving what’s poised to be a transformational moment in infrastructure investing. And we dive into the various ways capital can invest in the opportunities that we’re seeing today as well as the ones we’re expecting, and how investors can incorporate the asset class into their portfolios.
Infrastructure in action
Infrastructure investments impact on the world
Infrastructure investments offer institutions the opportunity to invest in the transformative building blocks of our economy and support the transition to a more technology-driven world. We believe that BlackRock’s global reach, deep experience and sourcing prowess make the foundations of an infrastructure investment platform investors can build on with confidence
STRATOS: A direct approach to carbon emission
Once fully operational, this direct air capture facility in Texas will remove and securely store up to half a million tonnes of CO2 from the atmosphere annually.
Gigapower
Gigapower is a joint venture with AT&T to build a commercial, wholesale open-access fiber optic network delivering multi-gigabit speeds to an initial 1.5 million customer locations, with AT&T as its anchor tenant.
Supporting communities: Zacatecas Wind Farm
We believe it is critical to consider the potential impact of our investment on communities, including Indigenous Peoples. Learn how we worked with the indigenous Huichol community to power 162,000 households in Mexico here
