CIO Insights Resilience versus recession Governments worldwide are seeking to drive the expansion of their infrastructure with large amounts of investment. The market for listed infrastructure investments alone is currently worth approximately USD7tn. These funds have only just begun to be distributed in Europe as well as in the U.S. Accordingly, the best things in infrastructure are probably still yet to come – from our planet’s perspective as well as the investor perspective. The market for listed infrastructure investments alone is worth approximately USD7tn according to current estimates. What is appealing for investors is, among other things, that the earnings from major traditional infrastructure operations may offer a level of protection against inflation. By contrast, innovative newer ‘green’ infrastructure projects aimed at decarbonisation and digital transformation are often smaller in scale but offer the prospect of capital growth. Note however that infrastructure projects can be subject to external influences in a strong and direct way. For example, the Covid-19 pandemic resulted in a massive drop in aviation in 2020 and, consequently, in income for airports and investors. Infrastructure: the best is yet to come Market and portfolio implications: o The U.S. and Europe have announced enormous infrastructure investment plans o Infrastructure comprises a large number of different asset classes o Infrastructure investments can offer the possibility of regular earnings or capital gains In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S. No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive. Investments come with risk. The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk. This document was produced in December 2022. 18