After more than a decade of benign conditions, there is a very real prospect that the world will experience a resurgence of inflation driven by record high oil and food prices.
At this year’s PortfolioConstruction Conference (August 27-28), Dennis Eagar, portfolio manager with Magellan Asset Management, will present a research paper illustrating why the infrastructure asset class provides a safe haven in inflationary periods. He’ll show that:
— many infrastructure assets have natural inflation hedges through direct contractual linkages of their pricing to inflation;
— price elasticity of demand for infrastructure is very low;
— globally, most infrastructure assets have high levels of interest rate hedging; and
— inflationary impacts on operating costs are muted relative to most other industries.
Research papers from the PortfolioConstruction Conference will be available in the August edition of Money Management’s Technical Adviser.
Now in its seventh year, PortfolioConstruction Conference has earned a reputation as the investment conference of the year. To register, go to http://www.PortfolioConstruction.com.au/Conference
