The global listed infrastructure (GLI) asset class dipped in September as higher energy prices, U.S. political uncertainty and China’s Evergrande debt crisis weighed on financial markets, according to First Sentier Investors’ GLI review and outlook for the month.
The best-performing infrastructure sector was airports, followed by pipelines, while the worst-performing infrastructure sector was towers/data centers, which were affected by rising bond yields. Utilities also underperformed due to higher bond yields, a spike in natural-gas prices, and the threat of political interference in European power markets.
The outlook said Japan was the best-performing infrastructure region. The United States was the worst, as its politicians debated raising the country’s debt ceiling and continued negotiations on President Biden’s infrastructure-stimulus plan.