Stay up-to-date with the current investment and macroeconomic issues. Our listed infrastructure experts analyse the themes and trends which lie at the heart of your investment challenges.
Portfolio Manager Nick Langley discusses how global infrastructure will play a key role in the world meeting ambitious net-zero carbon emissions targets. He highlights how, given the high levels of government spending underway to cope with the pandemic, economies around the world will rely on the private sector to fund many emission-lowering initiatives, both for regulated infrastructure such as utilities and for user-pays assets such as rail and airports.View full article
Economic data continued to show signs of a strong rebound from the COVID-19-induced lows of the second quarter, albeit the rebound continued to moderate. Infections continued to grow, although resulting mobility restrictions were targeted rather than general, thus mobility remained largely unchanged.
Monetary policy remained easy, with governments continuing to support economies. Bond rates are expected to remain low for a significant period, with the U.S. announcing an average inflation targeting framework.
The RARE Global Infrastructure Index seeks to provide focused exposure to infrastructure companies by analysing the actual sources of corporate cash flows rather than high-level industry classifications.
General equities performed strongly during August, supported by ongoing easy monetary policy. Global infrastructure, including our Global Listed Infrastructure funds, underperformed general equities.
Two indicator improvements in August further strengthened the overall green signal of the ClearBridge Recovery Dashboard, confirming our view that a durable market and economic bottom has formed.
One of the benefits of being a part of ClearBridge Investments is having access to the ClearBridge Anatomy of a Recession dashboard. This proprietary risk dashboard is updated monthly and designed to help you stay informed on economic and market developments and guide you in making portfolio allocation decisions.
Will infrastructure be the centrepiece by which governments stimulate their economies?
As the COVID-19 pandemic continues, the extraordinary measures aimed at mitigating its spread are testing business models and strategies. So what can be relied upon?
Listen to Senior Portfolio Manager Shane Hurst discuss the valuations from Q2 2020 within the infrastructure asset class and why valuations remain attractive on a medium, to long-term excess return basis.
Top performing stocks for the quarter included American midstream company Cheniere, American rail company Union Pacific, Australian toll road company Transurban and American comms companies Crown Castle and American Tower.
Top performing stocks for the quarter included American renewables companies Nextera Energy Partners, Clearway Energy and TerraForm Power, Australian toll road company Transurban and American electric company Dominion Energy.
The premise of listed infrastructure investing is that while regulatory regimes and concession agreements are designed to produce outcomes over long periods of time, the majority of general equity investors have a shorter time horizon. This timing mismatch provides the opportunity for long-term investors to use liquidity to enhance infrastructure returns.