The majority of people with more than £200,000 of investible assets now have an allocation to infrastructure, new research shows.
Time Investments surveyed 200 wealth managers, discretionary fund managers, fund selectors, and investment analysts and found 92 per cent of their clients invest in infrastructure.
When asked, 68 per cent said the key reason was a desire to de-risk portfolios through diversification, while 61 per cent put it down to an increased focus on ESG.
Andrew Gill, co-fund manager of the TIME:UK Infrastructure Income fund, said: “Our research shows that asset allocations to infrastructure are set to increase over the next 12 months.
“This is predominantly being driven by diversification and the desire for secure income streams as investors try to weather the economic challenges.”
Other reasons cited by advisers were wanting secure income streams or defensive investment strategies.
It also found for the average client, 71 per cent said their current allocation range to the asset class was between 4 and 6 per cent of their overall portfolio.
Looking forward, three quarters said that they expect allocation to infrastructure assets to increase over the next year while 25 per cent expect it to stay the same.
Gill added: “Whilst political risk is elevated in a general election year, UK infrastructure looks well supported by the two main Westminster parties.
“UK public debt remains highly elevated and though infrastructure has been an easy target for spending cuts, such as in the early 2010s, there seems to be a greater understanding of the need for continued, well-targeted infrastructure investment.”
tara.o'connor@ft.com
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