Despite the challenging economic environment, the global listed infrastructure asset class remains supported by a number of key structural growth drivers, according to First Sentier Investors’ outlook for June.
According to Peter Meany, head of global listed infrastructure for First Sentier Investors, utilities, which represent about a half of the listed infrastructure opportunity set, are positioned to derive steady, regulated earnings growth by building solar and wind farms and by upgrading and expanding the networks needed to connect these new power sources to the end user. In the medium term, the roll-out of electric vehicles also is expected to provide a boost to utilities — first from investment opportunities associated with linking EV charging stations to the grid, and then from higher overall demand for electricity.
In addition, the increasing demand for mobile data continues to support steady earnings growth for towers and data centers. As the adoption of