In this podcast, Mike Bruno, Director of Index Research at FTSE Group, helps define infrastructure investment opportunities, discusses why infrastructure is an important area for long-term and short-term investors, and examines interesting new building projects happening in the recovering global economy.
Subscribe to our series to receive new episodes as they are released. For more details on the FTSE Infrastructure Index Series, which Mr. Bruno discusses in detail in this episode, and forrelevant figures on the size of infrastructure projects to date, please see our accompanying PDF.
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Understand the composition of the FTSE Global Infrastructure Opportunities Index. Click image to enlarge.
Both institutional and retail investors may be interested in infrastructure; from the retail standpoint, the latest trend is the ability to get exposure to infrastructure through ETFs
In the early 2000s and late '90s areas like Australia and Southeast Asia realized that they could catch up with the U.S. and other developed nations in terms of infrastructure; however, the global economic crisis put this on hold - as the recovery begins, most investment analysts predict billions will be spent on stimulus plans that include infrastructure spending
Examining the BRIC countries, China is building high-speed rail throughout the country and Brazil has been developing its ports in an attempt to increase its ability to move global goods throughout the country; both developments will be intriguing to watch
As FTSE began to conduct research to develop the FTSE Infrastruture Index Series, the overwhelming response was that many investors did not know what fell under the definition of infrastructure; FTSE eventually concluded that most institutional investors focus on the networks that connect people, resources, and locations
So far, the FTSE Infrastructure Index Series returns indicate that over the long run an allocation to multiple developed countries has a much lower volatility than an allocation shifted towards emerging markets
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