Infrastructure: a resilient strategy in uncertain times
GIC assesses infrastructure investments for five traits: cash flow predictability, inflation linkage, barriers to entry, yield certainty and low obsolescence risk
IN 2005, GIC set up a dedicated team to invest in infrastructure businesses and was an early entrant in the sector. In the two decades since, it has refined its investment strategy through multiple economic cycles.
Today, infrastructure investments form a large and critical part of GIC’s portfolio.
GIC defines infrastructure as investments with a combination of stable and predictable cash flows, the ability to pass through inflation, and low risk of obsolescence. Their returns tend to be resilient across macroeconomic cycles due to the defensive nature of the underlying assets.
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