The global listed infrastructure market rallied in March despite elevated inflation levels, tighter coronavirus restrictions in China and a mounting list of Western sanctions on Russia, according to a report from First Sentier Investors (FSI).
FSI said the best-performing infrastructure sector was railroads, followed by towers/data centers, which had underperformed in January and February due to concerns about rising rates. Toll-road operators also are expected to fare relatively well in a higher-inflation environment.
The outlook for renewables and utilities with a renewables focus also is showing promise.
“We continue to like utilities with a renewables focus and the scope to derive steady, low-risk earnings growth by replacing old fossil fuel power plants with solar and wind farms, and by upgrading and expanding the networks needed to connect these new power sources to the end user,” said Peter Meany, head of global listed infrastructure at FSI. “Techno
