Infrastructure investing: What, why and how?

In this commentary John Berry looks at the, what, why and how of infrastructure. This includes thinking about where infrastructure fits in a portfolio and how NZ investors can access these investments.

What is infrastructure?

Infrastructure consists of physical structures together with associated networks and services that connect society and enable its orderly operation.  Infrastructure drives a functioning modern economy, covering transport, telecommunications, schools and healthcare, as well as resources like water and energy.

Given the essential nature of infrastructure and the large capital requirements, it has often been the responsibility of governments.  However as fiscal budgets have tightened and capital spending needs increased, partial or full privatization of infrastructure will be increasingly common.