JRI: Multi-Asset Infrastructure Exposure for the Electrified Economy

The global electrification-ready infrastructure market is surging, projected to grow at a compound annual growth rate (CAGR) of 8.7% through 2033, driven by electric vehicle (EV) adoption, grid modernization, and renewable energy integration, according to an Astute Analytica report. In this decarbonizing world, the Nuveen Real Asset Income and Growth Fund (JRI) emerges as a strategic vehicle for investors seeking exposure to the electrified economy. By allocating across equities, debt, and infrastructure-related assets, JRI positions itself at the intersection of energy transition and capital appreciation.

Electrification as a Macro Megatrend

The electrification market's expansion is underpinned by transformative forces. Global EV sales hit 17.1 million units in 2024, with China accounting for 70% of production, as noted in that Astute Analytica report. Concurrently, grid-scale battery storage added 11.9 gigawatts (GW) in the U.S. alone in 2024, while data centers are projected to consume 11%–15% of total electricity generation by 2030, according to the Deloitte outlook. These trends underscore a $2.2 trillion energy transition investment landscape in 2025, with electrification at its core, per a WEF analysis.

JRI's portfolio aligns with these dynamics. As of August 2025, the fund allocates 11.23% to utilities and 6.98% to energy sectors, according to the Nuveen fund page, sectors critical to electrification. Its exposure to grid modernization is further amplified by investments in advanced conductors and smart grid technologies, which utilities are deploying to address rising demand and integrate renewables, as detailed in a grid modernization analysis.

Strategic Allocation and Risk Mitigation

JRI's multi-asset approach-spanning 44.33% corporate assets (including 28.47% in corporate bonds), 26.18% real estate, and 12.70% preferred stock-provides diversification while targeting high-yield opportunities (per the Nuveen fund page). The fund's focus on electrification-ready infrastructure includes indirect exposure to EV charging networks and energy storage systems, which are increasingly attractive as decarbonization accelerates, according to a Roland Berger outlook. For instance, U.S. utilities spent $50.9 billion on distribution infrastructure in 2023, with energy storage investments jumping from $97 million to $723 million, based on the EIA report.

However, JRI faces headwinds. Its aggressive leverage and elevated interest rates pose valuation risks, with the fund trading at a historically low discount to net asset value (NAV), as noted in a Seeking Alpha analysis. Portfolio managers, including newly added James Kim, must balance growth ambitions with risk mitigation in a volatile rate environment, per the Nuveen page.

The Electrification Super Cycle and JRI's Role

The convergence of AI-driven grid optimization, circular economy initiatives, and policy tailwinds (e.g., the U.S. Inflation Reduction Act) is fueling an electrification "super cycle," according to a Schneider Electric blog. JRI's active management strategy allows it to pivot toward high-impact areas like EV battery recycling and renewable interconnectors, which are poised to become critical infrastructure assets, as highlighted in the McKinsey outlook.

Conclusion

JRI offers a compelling case for investors seeking to capitalize on the electrified economy. While its leverage and valuation pressures warrant caution, the fund's alignment with electrification megatrends-EVs, grid resilience, and renewables-positions it to benefit from the $411.38 billion electrification market by 2033, per the Astute Analytica projection. As the energy transition accelerates, JRI's multi-asset infrastructure exposure could serve as a cornerstone for portfolios targeting both income and long-term capital growth.