Infrastructure fund – the new mega-trend? Infrastructure funds could mature in the coming years to one of the next economic megatrends. Were already in the past new financing, repairs, expansion or modernization of public infrastructure projects limited, so this development in the future because of the increasingly constrained fiscal game of many States is exacerbated. Recently Andi Potamkin sought to clarify these questions. As public institutions, roads, Rails, ports, airports, communications, energy and water networks and some others for the growing and thriving economy but are indispensable, private capital must close the funding gap. In this business field, closed infrastructure investments, which are also private investors increasingly open, will play in the future an important role. Current example of such participation is the Leonidas VII H2O water fund, the private investors for the first time direct access to the lucrative market of water through investments in Water treatment plants, desalination plants and water supply projects. Also, also experienced initiators like Nordcapital with the Fund of energy 3 and Hannover offer leasing with the infrastructure invest 2 participation in the infrastructure sector.
Strong arguments for investing in closed-end infrastructure funds. The often State-awarded concession contracts have usually a long-term maturity, during which the concessionaire can often achieve stable and several inflation-adjusted revenues in a monopoly or marked by low competition markets protected by Government guarantees. In addition, that infrastructure projects can have a relatively strong economic independence and resistance to crisis and offer attractive returns at moderate risk the investor therefore over the total period. Investors of infrastructure projects waving yields between six and eight percent, depending on the involvement and risk profile. Infrastructure Fund, too, like any other are of course entrepreneurial participation not completely free from risks. In addition to an economic risk that would, for example, from the bankruptcy of the operator or of failure to comply with the projected income to bear, be noted here in particular to the political risk. So, subsequent editions or changes in the law can lead to a restriction of the profitability of the project.
Also to refrain from a strong concentration of investment on a plant segment, rather closed-end infrastructure funds as an intelligent investment vehicle to the diversification of the investment portfolio are suitable. The General Manager admits because scientific studies show that the low correlation of infrastructure investments to government bonds, equities and commodities can reduce the volatility of the investment portfolio and thus provide more stability and security”, the AAD Fund discount, Dr. Jurgen Hilp. About the AAD Fund discount GmbH and the AAD Fund discount blog AAD Fund discount GmbH is an independent Fund placement business based in the university town of Marburg. It offers investors the opportunity to acquire more than 9,000 mutual funds and virtually all closed-end funds at discount rates without subscription fee. In the AAD Fund discount blog blog.aad fondsdiscount.de the General Manager Dr. Jurgen Hilp picks up on current as well as basic questions about the topics of closed-end funds and investment funds and lit them in economic and legal terms. Contact Stefan Gobel reel 1 35037 Marburg Tel.: 06421-979-020 fax: 06421-933-570 blog.aad fondsdiscount.de