European investors are turning to infrastructure equity funds due to rising inflation, according to The Cerulli Edge European Monthly Product Trends report. Infrastructure equity funds were one of the few sectors in the European market to experience asset growth during the first two quarters of 2022, to €29 billion, up 10%.

European investors are turning to infrastructure equity funds due to rising inflation, according to The Cerulli Edge European Monthly Product Trends report. Infrastructure equity funds are products that invest in listed companies working in the infrastructure sector, such as businesses in utilities, highways, marine ports, and transportation.

The report remarks: “. . . infrastructure assets often have an explicit link to inflation via regulation or formal terms and conditions as part of agreed contracts. Investors are also attracted by the prospect of a longer-term view – commonly associated with infrastructure projects – yielding a steady source of income. This point becomes more pertinent given the recent volatility in the bond market.”

The report further notes that there is also movement at national levels in Europe to increase infrastructure investment.

Source: https://www.institutionalassetmanager.co.uk/2022/08/03/310150/investors-turn-infrastructure-equity-funds-amid-inflation-fears