Achieving Diversification in Unlisted Infrastructure Investment: Smart Infra Portfolio Construction
Mar-2024
Risk Management & Private Assets Research
Strategic asset allocation and portfolio construction matter in private asset investing: they help balance risk and return objectives, enable diversification across sub-sectors, geographical regions, and investment types, mitigating specific risks. Aligning investments with long-term objectives, whether income generation, capital appreciation, or inflation protection, enhances portfolio resilience, and thoughtful allocation fosters stability, vital for private assets' illiquid nature. Risk management also helps optimize capital deployment, ensuring efficient utilisation of resources and maximizing long-term returns in private asset classes.
Our research focuses on using market benchmarks and robust risk data to document the characteristics of private asset classes and their potential role in the portfolio.