The global listed infrastructure asset class gave up ground in November as news of a potentially more infectious coronavirus variant and indications that the U.S. Federal Reserve may start to reduce monetary stimulus measures sooner than expected weighed on financial markets, according to an outlook report by First Sentier Investors.
The FTSE Global Core Infrastructure 50/50 index returned –2.2 percent, while the MSCI World index ended the month –1.6 percent lower.
The best-performing infrastructure sector was water/waste (+1 percent) as investors sought defensive exposure. Toll roads (+1 percent) also held up well, with Asia Pacific operators tending to outperform European peers.
The worst-performing infrastructure sector was pipelines (–6 percent), on concerns the Omicron coronavirus variant may hinder the global economic recovery and reduce demand for energy. Airports (–6 percent) underperformed as strong October passenger volumes were overshadowed by