Infrastructure is an asset class often seen by investors as a diversification tool that can provide a hedge to long-term liabilities by offering exposure to potentially stable, inflation-linked returns. Listed infrastructure indexes enable investors to measure the performance of an increasingly important segment of global equity markets.
Like real estate, infrastructure assets have shown the ability to generate a steady income stream, an increasingly attractive proposition in a low-inflation, low interest rate environment. In addition to higher dividend yields, listed infrastructure investments may provide higher return-to-risk ratios.
With these features in mind, market participants may use infrastructure indexes as diversification tools for global investment portfolios. The FTSE Infrastructure Index Series provides a means to benchmark the returns of listed companies involved in infrastructure activities on a global basis, by developed and emerging markets segments.
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