The most important bullish factor for infrastructure investing in the UK is the continued supply of high-quality investable assets producing long dated, fixed rate cash flows with upward only inflation linkage.
There is no doubt of the UK government's commitment to infrastructure development and renewal, with the Hinckley C plant costing £29.7bn and Crossrail £14.8bn. Hinckley C will be the most expensive object ever built on Earth, for a plant which will generate 7% of the UK's needs. Renewable energy currently provides about 24% of energy needs and, as such, installed solar and wind generation projects are excellent assets. Why infrastructure funds are positioned to benefit from fiscal stimulus While new renewables projects with government subsidies are becoming rarer, the best rene...
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