Maritime Trade and Transport - HWWI

Transport infrastructure sectors
Fig. 25
Building companies Logistics companies Financial services providers
(road, rail, (shipping lines, airlines, transport (banks, infrastructure
port facilities, etc.) companies, railroad comp., etc.) fonds, bonds, etc.)
Port operators Transport vehicle manufacturers Equipment producers
(airplane, ship, etc.) (train, truck, plane, ship) (traffic lights, cranes, pumps)
Software Energy suppliers Infrastructure operators
(logistics, navigation, etc.) (fuel, electricity, etc.) (toll roads, tunnels, ports, etc.)
Source: Berenberg Bank.
increases investor confidence in the fund. To safeguard this interest, its own experts often join
or replace the existing management of the infrastructure project.
The return on infrastructure funds is a combination of the net cash inflow and the capital
growth from their investments during the fund life. In the past, with moderate risk, they have
generated two-digit returns on average. The long-term and very predictable cash flow demonstrates
parallels to fixed-rate bonds. The acquisition of real assets appears to justify a comparison
with real estate investments. In the past, infrastructure funds have performed better than
both of these investment classes.
Infrastructure funds that are tradable on the exchange offer the advantage of greater liquidity
and smaller denominations. They do, however, react to general stock market fluctuations.
This means that the investor does not share directly in the earnings and appreciation of the
investments involved and must therefore accept a potentially greater volatility. Infrastructure
funds that are not listed offer the best diversification for an investment portfolio. Up to now,
they have been principally reserved for institutional investors. It was only very recently that the
Macquarie Investment Bank made it possible for private investors to hold shares in an unlisted
fund. Shareholdings are also basically possible through a very few private equity funds that
specialize solely in infrastructure.
However, they pursue a short-term and more venturesome investment philosophy aimed
at higher returns. Realizing fast capital gains profits is not compatible with the long-term planning
horizon of investments in infrastructure. Furthermore, managers of private equity funds
may not have the specialized knowledge necessary to evalu-ate infrastructure projects. It is just
this, however, that is of paramount importance for the success of a project.
Berenberg Bank · HWWI: Strategy 2030 · No. 4
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