
doi: 10.2139/ssrn.1321723
The Asia infrastructure business encompasses a broad range of assets providing essential services. These include transportation, utilities and energy-related hard assets. Publicly listed infrastructure assets include toll road and bridge operators, airport and port operators, utility companies and gas or petroleum transport companies. Listed infrastructure assets have returns that have low correlations with stocks and bonds, making them good diversifiers. Risk factors include regulatory risk and beta risk.Listed infrastructure stocks offer stable yields that are higher than those from the broader stock market, usually inflation linked or otherwise protected, and have lower volatility. This is useful for investors seeking high current income, and for pension funds seeking stable returns and assets that fit easily into a liability-matching framework. The current size of the global listed infrastructure market is over U.S. $2.8 trillion; forecast expenditure for the next ten years in Asia stands at between $20/$30 trillion. The S&P Asia Infrastructure Index is designed to serve the investment community's need for an investable benchmark representing the Asia infrastructure market that is also suitable for the creation of structured products. The index includes 30 large, liquid infrastructure stocks that provide diversified representation across three infrastructure clusters: Utilities, Transportation and Energy, and is weighted to ensure the retention of diversification across the clusters.
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