Overview
UBS Chief Investment Office published a thematic note on 15 August 2026, arguing that infrastructure assets present an attractive blend of long‑term growth, resilient cash flows and portfolio diversification amid a volatile economic environment.
Four Supporting Factors
1. Structural spending trends – Demographic expansion, artificial‑intelligence adoption, supply‑chain realignment, energy‑security concerns and the net‑zero transition are projected to generate more than $100 trillion of cumulative infrastructure investment by 2040, according to McKinsey estimates cited by UBS.
2. Stable, inflation‑linked cash flows – Many infrastructure holdings provide predictable revenue streams that are linked to inflation, which could shield investors from slower growth and persistent inflation caused by geopolitical tensions, U.S. political uncertainty or setbacks in AI investment.
3. Historical performance – Cambridge Associates data show that infrastructure‑linked assets delivered a 10.9 % return in 2025 and posted an average annual return of 10.8 % over the preceding decade, though UBS cautions that past performance does not guarantee future results.
4. Diversification benefits – The correlation between infrastructure and a traditional 60 % stocks / 40 % bonds portfolio has fallen to roughly 30 % in recent years, and the asset class also exhibits low correlation with gold, enhancing its role as a complementary allocation.
Preferred Investment Strategies
UBS currently favours core and core‑plus infrastructure exposures within non‑cyclical sectors. These strategies typically target established assets with contracted or regulated revenue streams, such as utilities, toll roads, pipelines and social infrastructure. Such assets are expected to deliver more predictable, inflation‑protected income compared with development‑stage projects.
Risk Considerations
While value‑add and opportunistic strategies may aim for higher target returns, UBS highlights heightened risks including project delays, construction‑cost overruns, uncertain demand and greater sensitivity to economic cycles. Additional class‑wide risks comprise illiquidity, leverage, defaults, political intervention, regulatory changes and concentration in specific sectors or regions.
Investor Access Options
UBS states that investors can obtain infrastructure exposure through a range of vehicles tailored to liquidity preferences and risk tolerance, including direct investments, infrastructure funds, public‑private partnerships and listed securities.