A relatively quiet quarter ended in volatile fashion following the June 23 U.K. referendum in which voters elected to leave the European Union. Global equities drifted higher in April and May but fell sharply immediately following the vote, before recouping some losses in the last week of trading. Global equities, as measured by the MSCI World Index, returned 1.2 percent during the second quarter.
Despite the rebound that followed the Brexit-related selloff, nervous investors flocked to safe assets. Infrastructure equities significantly outperformed broader developed equity markets. During the quarter, the Dow Jones Brookfield Global Infrastructure Index returned 7.4 percent. Six of eight subsectors within the index were positive, led by Water (13.5 percent), Oil & Gas Storage & Transportation (10.5 percent), Communications (6.3 percent), Electricity Transmission & Distribution (6 percent), Diversified (3.6 percent), Airports (2.2 percent); while Ports (–7.0 per