Specifically, we wanted to examine how the coronavirus is changing infrastructure investment. Although it’s still early days, we already know that the resulting economic fallout will be materially different from that which followed the 2008 global financial crisis. As such, we wanted to provide a snapshot of what key industry figures are thinking at this point in time.
We reached out to 10 well-known players and asked them to tell us how they thought the asset class will be changed by covid-19. Their answers make for a fascinating read.
Some broad themes emerged. Resilience is one of them, both in a general sense and in terms of sustainability. The latter issue, unsurprisingly, is front and centre, as is the climate emergency. There is also concern over how government policies will evolve and whether investment barriers will be erected.
The view is generally positive when it comes to the asset class’s ability to withstand the pandemic’s impact, though transport is expected to still be in the eye of the storm for a while. Segmentation is already accelerating as a result of covid, with one manager arguing that asset management and the ability to add value to infrastructure assets will be even more important.
Finally, it will be crucial to keep an eye on evolving trends and how to capitalise on them, be they care businesses, global distribution networks or food infrastructure. As AMP Capital’s global head of infrastructure equity Boe Pahari tells us: “Investors must remain nimble, open to trends, and look to what is essential to the future of modern living.”