Article
Aberdeen MPSUnlocking investment opportunities in infrastructure
Since our launch in 2014, Aberdeen MPS has offered exposure to global listed infrastructure as a distinct asset class. Jason Day explains, over 10 years on, how the team’s approach to infrastructure continues to unlock opportunities for the long-term benefit of clients.
Author
Jason Day
Senior Investment Manager, Aberdeen MPS
Duration: 2 Mins
Date: 22 Aug 2025
Core to any country’s economic growth is building and maintaining infrastructure. At Aberdeen, we see infrastructure as a distinct asset class which offers compelling investment opportunities and as such, is an important component of portfolio construction.
Years of underinvestment in developed markets have left infrastructure networks in increasing need of modernisation. In response, governments across the globe are prioritising infrastructure spending to stimulate growth and address structural challenges. For example:
- In the UK, the Labour government is planning significant investment in technology as well as the clean energy sectors to help achieve its net-zero carbon targets.
- The new German Chancellor has set aside a €500bn fund to develop infrastructure projects - from transport to energy and digital - to help lift Europe’s largest economy out of stagnation and to wean itself from energy dependence on Russia.
- In the US, President Trump’s Big Beautiful Bill is designed to boost US energy independence and security, with $50bn set aside for border security. The US President’s Council of Economic Advisers suggests that, over the next four years, the spending will boost real economic growth by up to 5.2% and raise investment by up to 14.5%.
Infrastructure as a solution for investors
Since the launch of the Aberdeen MPS suite of risk-targeted portfolios in 2014, the core characteristics of infrastructure have been beneficial in terms of overall risk return.
Infrastructure is a strategic asset class that is more than just about building roads and bridges. It can offer:
- resilience to market volatility
- inflation protection
- dependable income streams.
We also see infrastructure as a powerful diversifier in our portfolios. With low correlation to traditional equities and bonds, it can mean portfolio stability with important inflation-linked characteristics given today’s structurally higher inflation compared with the past ten years.
As an alternative asset class, considering its historical average, we also believe infrastructure is undervalued relative to global equities. This should prove to be a tailwind over the long term. In addition, unlike traditional fixed income, infrastructure has the capability to provide an uplift to income streams.
Infrastructure: playing an increasingly important role
Over the next ten years, these characteristics of infrastructure will be more and more relevant for clients in modern portfolios as an investment opportunity. For example, while traditional fixed income works well as a shock absorber during a global recession, the asset class provides less protection when inflation picks up or when rates rise, as was evident with the vulnerability of bonds during 2022.
With pressure on governments to deliver on their infrastructure objectives, the sector will continue to evolve and innovate, driven by:
- regulatory changes
- demographic trends
- technological advancements.
The secular growth of AI is increasingly becoming a strategic requirement for governments to help boost productivity and will require significant investment.
Aberdeen MPS: Accessing a wider range of infrastructure strategies
As the asset class becomes more widely adopted, we’ve been able to not only access a wider range of infrastructure strategies but also access them at more competitive price points - all of which is good news for long-term investors choosing Aberdeen MPS.
Aberdeen Portfolio Solutions Limited offers a range of portfolio strategies for adviser firms, with a choice of management styles and risk levels to meet clients’ investment needs.
Find out more about how Aberdeen MPS can support your adviser firm.
Risk warning
The value of investments can go down as well as up and your clients could get back less than they paid in. The views expressed in this blog should not be regarded as financial advice. Past performance does not predict future returns. The value of investments, and the income from them, can go down as well as up and clients may get back less than the amount invested.
