- May 1, 2015: Vol. 8, Number 5

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Infrastructure securities down in first quarter: Sectors with more growth outperformed higher yielding, but slower growing sectors

by Craig Noble

The MSCI World Index returned 2.5 percent for the first quarter of 2015, with strong returns from Asia Pacific (7.7 percent) and Europe (3.6 percent) tempered by underperformance from North America (0.9 percent). Global infrastructure securities underperformed the MSCI World Index during the quarter, returning –1.7 percent. There was significant divergence among infrastructure sectors during the quarter. In general, sectors with more growth outperformed higher yielding, but slower growing sectors. For instance, the strongest performers were airports (10.4 percent), ports (5.3 percent) and toll roads (5.0 percent), while electricity transmission and distribution (–6.1 percent) and water (–2.9 percent) were weaker. Energy infrastructure companies struggled again due to continued low crude oil prices, although the oil and gas storage and transportation sector (–0.6 percent) was down significantly less than Master Limited Partnerships, which returned –5.2 percent for the quart

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