How to invest in infrastructure through an SMSF

As an asset class, infrastructure offers investors regular income and inflation protection. Infrastructure yields are often backed by long-term contracts with government or semi-government organisations, which can make their returns more predictable than other asset classes.

Infrastructure investments can also complement other listed asset classes in an SMSF portfolio, providing diversification and a buffer when markets are volatile.

Traditionally, asset classes such as infrastructure that require large initial investments have been out of reach of many SMSF investors. However, new infrastructure investment products have been coming to market that make it easier to gain exposure to this alternative asset class. This is a boon for SMSFs, particularly given the nature of infrastructure as a long-term investment and how that can align with retirement goals.

What is infrastructure?

Infrastructure refers to the basic physical and organisational structures needed to run a society – this includes toll roads, railways, airports and ports. Also included are telecommunication facilities, power lines and data centres.