The recently introduced 5% infrastructure quota in the German Investment Ordinance (AnlV) creates new investment opportunities for institutional investors. Until now, infrastructure investments – depending on the structure – had to be offset against other mix ratios, such as the risk capital ratio (Section 3 (3) sentence 1 AnlV) or the real estate quota (Section 3 (5) AnlV), which had often already been exhausted.
With the new independent infrastructure ratio of 5% of the guarantee assets (§ 3 para. 7 AnlV), this asset class will be significantly upgraded and more attractive, as it will no longer have to compete with other investments for limited quotas. This leads to a noticeable relief of the portfolio and offers additional leeway without having to reduce existing allocations. Infrastructure projects can now be implemented without being offset against other asset classes – a decisive advantage for a higher return orientation.
Regulatory developments to date at national and European level show that legislators are increasingly aiming to mobilise private capital from institutional investors – such as insurance companies and pension funds – for the expansion of infrastructure projects. These initiatives underline the increasing importance of long-term investments in sustainable energy generation, grid capacities and storage technologies. In this context, the new infrastructure quota according to AnlV offers an additional incentive for institutional investors to invest specifically in essential economic sectors.
In addition to regulatory advantages, infrastructure investments are characterized by excellent investment characteristics: they typically offer steady, predictable cash flow and act as an inflation hedge, while being subject to lower volatility than many other asset classes. As a result, infrastructure investments act as a stabilizing portfolio building block and contribute to reliable, long-term returns.
The new 5% infrastructure ratio offers institutional investors a double dividend: on the one hand, increased freedom for high-yield investments in the future without quota conflicts with other asset classes, and on the other hand, an individually designable, compliance-proof investment platform for sustainable growth.
