The global-listed infrastructure sector is well positioned to benefit from a number of positive drivers, according to First Sentier Investors’ review and outlook for October.
The best-performing sector was railroads, which logged strong earnings results, according to Peter Meany, head of global listed infrastructure at First Sentier Investors. Traffic volumes have also proved more resilient than those of other transport infrastructure assets, and toll roads are now showing a return to normal demand levels.
Pipelines also showed gains, on the view that high energy prices and a recovering global economy would provide the sector with favorable operating conditions. The best-performing regions were the United States and Canada, reflecting strong gains for their railroad, pipeline and tower stocks.
The worst-performing infrastructure sector was toll roads, as the spread of the COVID-19 delta variant continued to affect Asia Pacific traffic volumes. The region that