Infrastructure: Investment for the future
An investment in infrastructure is an investment in the future drivers of economic and financial performance. In fact, the global infrastructure investment requirement up to 2040 is estimated at 94 trillion US dollars across the energy, communications, transport and water sectors.1
We urgently need better energy grids, railways services, and more digitalisation. And the lack of modern infrastructure is something many of us experience every day.
Given the strains on public finances in many locations, the huge investment needs for infrastructure require more private capital to bridge the gap.
What are infrastructure investments?
From data centres, solar farms, and green hydrogen production to hybrid trains, roads, a super sewer and an interconnector – we are invested in many projects and companies to improve today´s infrastructure and be ready for tomorrow.
Infrastructure investments are a form of "real assets" that are crucial to a country's development and often provide essential services to the public such as train services, roads, solar farms, utilities or fibre networks. They cover spending on new transport construction and the improvement of existing networks projects among other things and can support the decarbonisation of many projects and companies. And at Allianz Global Investors, our investments in this sector are helping to build tomorrow’s infrastructure.
Making the right calls
Investing in infrastructure requires a long-term view: hence long-standing experience, reliable partnerships, while being innovative to anticipate future trends and risks are key.
At Allianz Global Investors, we’ve been investing in infrastructure since 2008 on behalf of Allianz and other large institutional investors, so we know the critical role it plays in shaping the future. In that time, we’ve made over 250 investments across 6 continents and have over EUR 50bn assets 2 under management around the world. With that we have built a reputation as a trusted partner for managing complex infrastructure projects.
So, with our scale, heritage and experience, we’re strongly positioned to identify opportunities that offer meaningful returns.
Trends to watch out for
When investing in infrastructure, you should always consider: Digitalisation, Decarbonisation and Demographic change. Simply put, they talk to how we can make infrastructure more renewable, sustainable, and how we can tackle the demographic challenges many countries will be facing soon.
An investment in infrastructure is an investment in your daily life and the future. And we expect to see more opportunities in this sector for investment that help drive the energy transition, digitalisation and transport.
We’ve written a handy introduction, which you can read here.
Discover our major themes
1 https://outlook.gihub.org/
2 https://www.allianzcapitalpartners.com/en/media/news/20240321-allianzgi-with-over-eur-50-billion-aum-in-infrastructure
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