Manulife is turning to secondary market purchases of infrastructure certificates of participation to tackle a chronic low distributed‑to‑paid‑in (DPI) ratio that has plagued its infrastructure funds. By buying existing interests, the insurer can unlock cash that would otherwise sit idle while still retaining exposure to long‑term assets.

Retail inflows into infrastructure funds have surged, creating a new exit pathway for managers and raising liquidity options for investors. Yet the same inflows strain the market, as higher demand pushes valuations higher and compresses returns, forcing firms like Manulife to seek alternative routes to improve DPI.

The strategy signals a broader shift in the infrastructure asset class, where capital managers are forced to improvise in a market that rewards speed and liquidity. Manulife’s move may prompt other insurers to follow suit, reshaping how infrastructure funds are structured and accessed by investors.

Investors watching the sector will note that secondary purchases, while providing immediate cash flow, also carry valuation risks tied to the underlying asset’s performance. If Manulife succeeds, it could set a precedent for other asset owners to balance legacy exposure against the need for liquidity in an environment of tightening credit and rising rates.