Listed infrastructure offers sustainable growth and inflation-protected income

Global listed infrastructure is well positioned in this environment as the asset class offers investors sustainable growth and inflation protected income streams.

We see six major investment themes impacting global listed infrastructure companies as we move through 2010; these being volume recovery, acceleration in M&A activity, balance sheet optimisation, government stimulus packages, potential for increased political interference and further closing of the ‘value gap’. Earnings from infrastructure companies tend to be driven by the nature of their services, regulated returns on an existing asset base, contracted income and inflation protected price escalators. However, some infrastructure assets are exposed to throughput volumes. As the globa...