Trillions of dollars need to be invested in infrastructure globally

Bridges, roads, railroads, airports, utilities that power our homes. We couldn’t get by without such critical infrastructure. It’s no secret Canada’s infrastructure is in dire need of investment. That concern was one of the major drivers behind the Liberal victory: the party pledged to spend $30 billion on infrastructure during the next four years.

But that’s a small drop in the bucket. The total infrastructure deficit — bridges in need of repairs and utility networks that need upgrading — is estimated at about $123 billion in Canada.

Globally, infrastructure needs are estimated to be about $57 trillion over the next 15 years, a 2013 report by the McKinsey Global Institute said.

So with all that money about to be put into transportation, energy, telecom and water-networks infrastructure around the world, many investors are increasingly expanding their portfolios beyond the classic asset allocation of stocks, bonds and cash.

Infrastructure is quickly becoming the fourth asset class. Until recently, this area of investment had been the domain of institutional investors such as pension funds. Many of us had a stake in it — at least indirectly — through our work pensions and even CPP, says Rob Tetrault, a portfolio manager with Rob Tetrault Wealth Management Group at National Bank Financial in Winnipeg. For the full article click here 

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