The strategy has now been running for 77 months. November provided some breathing space to markets after a very challenging October. The strategy rebounded, up 1.7% for the month, in-line with US stocks, but well ahead of the Eurostoxx 50 which was down 0.8% for the month. The S&P Global Infrastructure Index, the Infrastructure ETF’s and the major competitors all performed similarly to the strategy, gaining around 1.5%. Investment grade bonds were up 0.5%, and interest rate sensitive stocks gained, with the iShares International REIT ETF up 3.2% and the Dow Jones Total Market Utilities Index up 3.3%. Year to date, the strategy is down -2.6%, whilst the average of the 7 largest competitors is -6.7%, the S&P Infrastructure index is -10%, the Stoxx50 is -9.4%, the S&P 500 is up 2.7% and the MSCI World LC is -2.3%.
In this article written for FTSE GM, Mark Ebert explains how the US government’s ambitious plan to overhaul the country’s infrastructure networks over the next decade provides a huge opportunity for investors, but uncertainties abound…
Major US Infrastructure networks overhaul planned if legislation passes
Infrastructure equities provide proven benefits to investors
Private finance and privatisation likely to be required
Will experienced, foreign operators be able to access the build-out?
The US government’s ambitious plan to overhaul the country’s infrastructure networks over the next decade provide a huge opportunity for investors, but uncertainties abound: how much of the proposed legislative framework will eventually be voted through, how to buy into what assets. and how much access foreign operators will be able to secure.
Investors have been hit as Carillion plc, a major UK construction and facilities management company, entered forced liquidation suddenly in January, creating negative sentiment for the entire social infrastructure sector in the UK.
The largest exposures in our Listed Infrastructure strategy are toll roads and tunnels (17%), diversified infrastructure companies (16%), and rail & bus (16%). Rail & bus, agricultural infrastructure and communications towers stocks were largely unchanged over the last month, while waste recycling (the smallest allocation), communications and social infrastructure (also a small allocation), performed poorly.
In this article published in Le Temps’s 10 July edition, Jean Keller explains why private financing of infrastructure projects should grow in Switzerland, as has been the case in several other European countries.
Transportation dominated the performance of QUAERO’s infrastructure strategy over the past four weeks. The largest sectoral exposures are to the diversified infrastructure companies (17.3%), toll roads and tunnels (16%) and rail & bus (12.8%). The best performing sectors in April were satellite (up 9.2%), airports (up 5.8%), and toll roads / tunnels (up 5.3%). The only two infrastructure sectors which lost ground in April were agriculture (down 1.3%) and electricity transmission and distribution (down 1%). The positive performance was broadly based with 83% of holdings gaining during the month.Read more