Electricity networks and long-dated toll roads are powering infrastructure performance. Structural tailwinds from AI, climate resilience and regulated returns are building momentum.
The energy transition is full of unknown unknowns, but there are still ways to get some certainty over returns as the world changes how it generates and distributes energy.
As the economy tilts toward recession, portfolio analysts are turning towards sectors and companies that handle cloudy conditions better than most. Healthcare, energy, consumer staples and utilities come into focus, while cyclical sector companies lose favour.
Increased traffic volumes and higher earnings have provided valuation support for the infrastructure company, ClearBridge Investments’ Shane Hurst says, with the post-COVID-19 recovery positioning the business for solid growth.
Speaking on a fireside chat during The Inside Network’s recent ESG event in Tasmania, Langley said that while infrastructure assets will continue carrying the burden of inflation there is likely more to be concerned about with REITS, both in the dominant US market and around the world.
Infrastructure assets have been gaining investor interest due to their inflation hedging properties in recent times.
Listed infrastructure companies provide a powerful hedge against inflation.
