The introduction of India's first infrastructure investment trust, called IRB, in May underscores the expectation infrastructure spend will be a key driver of the country's growth over the next few years.
To visit the MarketEye website please click here.
The introduction of India's first infrastructure investment trust, called IRB, in May underscores the expectation infrastructure spend will be a key driver of the country's growth over the next few years.
The IRB trust, which holds six toll roads, features a 10-12% yield and it is likely to be the first of many such listings. To put this in context, just 10% of the Indian market's large cap stocks yield more than 3%.
The government has plans for some US$20bn infrastructure spend on roads but we think trusts like IRB may benefit from more than just increased government spending.
Aviation, for example, is another key focus for the government. In 2016 there were some 150 million domestic flight journeys in India, compared to c900 million in the US and around 500 million in China. Air travel may cost more but it takes around 1/6th the time. As such we expect to see the number of airports increase and they are likely to go private (as public-private partnerships).
Naomi Waistell - Newton, a BNY Mellon company
View full infographic here
This content is provided by Market Eye, BNY Mellon's blog. You can register to receive Market Eye updates by using the subscribe function here.
DISCLAIMER:
Past performance is not a guide to future performance.
Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds.
For Professional Clients and, in Switzerland, for Qualified Investors only.
Any views and opinions are those of the author, unless otherwise noted and is not investment advice.
BNY Mellon take no responsibility, nor endorse any comments from third-parties which contain links to external websites outside of those of BNY Mellon.
Furthermore, this material does not constitute an offer or invitation to anyone in any jurisdiction to invest in any BNY Mellon product or use any BNY Mellon services where such offer or invitation is not lawful, or in which the person making such offer or invitation is not qualified to do so, nor has it been prepared in connection with any such offer or invitation.
BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the corporation as a whole or its various subsidiaries.
This information has been prepared and approved by BNY Mellon Investment Management EMEA Limited. Issued in UK and Europe (excluding Switzerland) by BNY Mellon Investment Management EMEA Limited, BNY ellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated by the Financial Conduct Authority. Issued in Switzerland by BNY Mellon Investments Switzerland GmbH, Talacker 29, CH-8001 Zürich, Switzerland. Authorised and regulated by the FINMA.
All information contained in this material is current at the time of issue and, to the best of our knowledge, accurate.
© 2017. BNY Mellon Investment Management EMEA Limited. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from BNY Mellon. It is delivered on an "as is" basis without warranty. Click here for the full terms and conditions of use. BNY Mellon is committed to collect and store your details in a responsible way. For details on our data collection and privacy policy, please refer to Privacy Policy. WEB00791
The information contained in this e-mail, and any attachment, is confidential and is intended solely for the use of the intended recipient. Access, copying or re-use of the e-mail or any attachment, or any information contained therein, by any other person is not authorized. If you are not the intended recipient please return the e-mail to the sender and delete it from your computer. Although we attempt to sweep e-mail and attachments for viruses, we do not guarantee that either are virus-free and accept no liability for any damage sustained as a result of viruses.
Please refer to http://disclaimer.bnymellon.com/eu.htm for certain disclosures relating to European legal entities.
