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- June 2009 Vol. 2 No. 2

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Infrastructure Outperforms in Dismal First Quarter: Resilient Cash Flows Attract Investors

by Craig Noble

The new calendar year got off to a tough start, and while global infrastructure securities were not immune to general market forces, performance was comparatively resilient compared to many asset classes, including global equities.

In the United States, equity markets continued to be influenced by financial stocks. Although significant day-to-day equity market volatility persisted, investor confidence improved as certain economic indicators showed signs of bottoming.

The Dow Jones Brookfield Global Infrastructure Index was down 9.5 percent for the three months ending March 31. The Dow Jones Brookfield Global Infrastructure Composite Index, which includes master limited partnerships (MLPs), was down 6.5 percent. Global infrastructure securities outperformed the Dow Jones Global Equities Index, which was down 10.3 percent.

Interestingly, investors sought out sectors more closely linked to GDP growth, including transportation companies (airports, toll roads

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