“There are a number of different infrastructure sub-categories, but its key characteristics are stable dividend yields, inflation protection, low correlation to equities and low exposure to the economic cycle. Government-backed infrastructure projects provide a more certain and stable income stream. While infrastructure is a global industry, the UK has become a centre of excellence and the London Stock Exchange is one of the preferred listing routes.”
Bank loans
“Bank loans, which are also known as floating-rate secured loans or leveraged loans, can provide investors with an alternative source of income.
“Such loans pay a floating rate, earning a base rate – typically Libor [London inter-bank offered rate] – plus a spread, which means that if interest rates rise the income from these securities will rise in tandem. The spread they pay over the base rate also means they offer a relatively attractive level of income in what remains a low global yield environment.”
