Infrastructure: Making inroads in the wealth channel

Abstract

In the past, infrastructure was narrowly defined as the basic physical systems of a business, region or nation and often involves the production of public goods or production processes. Examples of infrastructure include transportation systems, communication networks, electrical generation and distribution networks, sewage, water and school systems. While the facilities, equipment or similar physical assets like bridges and roads are essential to an economy, infrastructure also enables citizens to participate in and remain connected to the social and economic community.

However, infrastructure is much more comprehensive than simply roads, bridges and airports that facilitate transportation from one place to another; it represents a vital part of our functioning economy. Today, the definition of infrastructure has broadened to include essential societal functions like power generation and distribution, energy storage and digital infrastructure such as data centers and fiber network. In this paper we will explore the following:

• What is infrastructure?
• How can we categorize infrastructure?
• Why is now a good time to invest?
• What lessons can be learned from institutions?
• What role does infrastructure play in client portfolios?