Payal Vasa

Payal Vasa, Manager, Real Assets, Lonsec While infrastructure itself is evolving as an asset class, we also note a change in investor behaviour. In the past, investors largely focused on core infrastructure: assets like toll roads and regulated utilities that provided steady, predictable income. However, strong demand for these assets has pushed valuations higher and yields lower. As a result, many investors are no longer satisfied with these return levels.

Payal Vasa, Manager, Real Assets, Lonsec Infrastructure has typically been used as a defensive part of portfolios, mainly for income and diversification. While that hasn’t changed, the role it plays is starting to broaden. It is now also being looked at as a source of growth, supported by a few clear long-term trends. At the forefront is the rapid expansion of digital infrastructure.