CFA Level I · CFA Level I Exam · Real Estate and Infrastructure
An investor wants exposure to infrastructure with daily liquidity and the ability to buy small amounts. Which of the following vehicles is most appropriate?
Publicly listed infrastructure securities are the most appropriate vehicle because they trade on exchanges, giving daily liquidity and low minimum investment sizes. Direct ownership of a concession and private infrastructure funds with long lock-ups require large commitments and are illiquid, so they do not meet the investor's needs.
- APublicly listed infrastructure securitiesCorrect
- BA direct investment in a toll road concession
- CA private infrastructure fund with a ten-year lock-up
Explanation
Listed infrastructure securities trade on exchanges, so they offer daily liquidity and small minimum investments. Direct concession investments require large capital and are illiquid. Private funds typically have long lock-ups and high minimums.
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