The Supply of Investable Capital

The total size of Global Capital Markets is estimated at US $218 trillion.


Persistent low yields are a significant challenge for investors. Global capital markets, estimated at US $218 trillion, can support part of the US $2.5 trillion annual infrastructure investment shortfall.

We believe infrastructure investments can help institutional investors reach their goals and can offer:

  • Attractive risk-adjusted returns
  • Low correlation to traditional asset classes
  • Stable cash yield
  • Long-lived physical assets
  • Essential services for a society
  • Barriers to entry for competitors
  • A measure of inflation protection

Private Sources of Capital in US$ Trillions

Private Sources of Capital in US$ Trillions

Source: WEF (2014)

Infrastructure is key for every UN SDG. Today’s decisions will chart our course for decades.

Efficient investment can improve the sustainability of infrastructure. Historically, 60 percent of global greenhouse gases can be attributed to the development and use of conventional infrastructure.

Investment decisions will determine a path towards a sustainable future—or lock in wasteful and polluting structures.

 

Source: WEF (2014), Fankhauser and Stern (2016), Guggenheim Investments

 




Investing involves risk, including the possible loss of principal. Infrastructure investments may be subject to a variety of risks, not all of which can be foreseen or quantified, including operating, economic, environmental, commercial, currency, regulatory, political and financial risks. Investing in a specific sector such as infrastructure is more volatile than investing in a broadly diversified portfolio, as there is a greater risk due to the concentration of holdings in issuers of similar offerings. Sustainability requirements, including environmental, social, and governance (ESG) obligations may limit available investments, which could hinder performance when compared to strategies with no such requirements.




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Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Real Estate, LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.