America’s Infrastructure Report Card

November 16, 2018 | Jeremy Zirin, CAIA, Senior Research Analyst, Real Assets

Pending a final vote count in Florida, the U.S. midterm election results are in with the Democrats regaining control of the House and Republicans maintaining majority control of the Senate. While a split Congress may lead to gridlock on various policies, one thing both parties should be able to agree on is the need for infrastructure investments in the U.S.

The historical under-investment, coupled with the lack of available public-sector funding, has impaired the government’s ability to deliver public services at adequate levels. The American Society of Civil Engineers (ASCE) estimated that $4.5 trillion needs to be invested through 2025 to upgrade the nation’s infrastructure. In its annual report, the ASCE in 2017 gave an overall “D+” grade for the condition and capacity of infrastructure in the U.S., further highlighting the need for additional investment.

Consequently, governments and public agencies have begun looking beyond the traditional funding methods to private investment in infrastructure via privatizations and public-private partnerships (“PPPs”). As a result, ownership and operation of infrastructure assets has been gradually moving from the public to the private sector on a global level. With this trend, the role of government has shifted from the provider of services to that of a regulator. This has provided a stream of investment opportunities and fueled development of a distinct alternative asset class for institutional investors that complements fixed income, public equities, real estate, and traditional private equity investments, and whose popularity is likely to increase as more investments and hence products come to fruition.

Print PDF

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Jeremy Zirin, CAIA
Senior Research Analyst, Real Assets

Get to Know Jeremy

Related Content

12.13.2018

What Do Higher Rates Mean for Asset Class Returns?

Higher interest rates coupled with signs of a global slowdown and roughly two months of market volatility — including several…

12.06.2018

Should Investors Be Concerned About Yield Curve Inversion?

After eight post-recession Fed rate hikes since 2015, the U.S. Treasury yield curve continues to flatten. On Monday, December 3,…

11.29.2018

Are Bonds Approaching Moderate Value?

This week’s chart looks at how bonds have fared during the global volatility of the last two months. In summary,…

11.08.2018

Will U.S. Equities Rally to Finish the Year?

U.S. equities experienced a sharp correction last month with broad market indices erasing virtually all their year-to-date returns. The October…

11.01.2018

Buying the Dip Takes a Hit

Historically, investors have attempted to capitalize from market drops by buying at the new lows in hopes that the stocks…

Market Anomaly or the Beginning of the End chart

10.26.2018

Market Anomaly or the Beginning of the End?

So far, October has been a forgettable month for equity performance. Internet and technology companies — once the darling of…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >