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Geopolitical Uncertainty Fuels Increased Investment in Infrastructure, Reports IFM
In response to escalating geopolitical tensions and fluctuating macroeconomic conditions, an increasing number of fund managers are turning their attention to infrastructure investments. According to insights from the IFM, these investments are being sought as viable long-term strategies that not only provide diversification but also serve as a hedge against inflation.
The current global landscape is marked by significant uncertainty, prompting investors to seek stable assets that can withstand market volatility. Infrastructure projects, which typically offer steady returns and low correlation with traditional asset classes, are becoming increasingly attractive. Fund managers are recognizing that these investments can mitigate risks associated with geopolitical instability and economic fluctuations.
Moreover, infrastructure assets often benefit from government support and public-private partnerships, further enhancing their appeal in a turbulent economic climate. As inflationary pressures persist, the demand for reliable income streams from infrastructure is likely to grow, reinforcing its position as a cornerstone in many investment portfolios.
In summary, the combination of geopolitical risk and macroeconomic volatility is driving a significant shift towards infrastructure investments, as fund managers seek to bolster their strategies against potential market disruptions.
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Source: Original