Partner Insight: The reawakening of the physical economy

Sebastien Beguelin, Senior Fund Manager at Royal London Asset Management, argues that, after years of underinvestment in infrastructure, the physical world is entering a once-in-a-generation investment boom

clock • 1 min read
Partner Insight: The reawakening of the physical economy

Across power grids, water networks, transport systems and industrial capacity, a new capital cycle is taking shape. Governments are launching large-scale infrastructure and decarbonisation programmes, while companies reshore production, rebuild inventories and invest in more resilient supply chains.

The result is a renewed focus on investment in the physical assets that keep economies running.

These assets form the ‘atoms' of Royal London Asset Management's elemental framework for assessing the investment landscape. Within this framework, Beguelin believes that energy transition, infrastructure renewal and the drive for more resilient supply chains are driving sustained demand for companies upgrading grids, transport, water systems and industrial capacity, with clear implications for earnings and capital allocation.

In Investment Week's latest Spotlight, he explains:

• The structural forces driving this new wave of investment in the physical economy
• How themes like energy transition, infrastructure repair and resilience translate into durable revenue streams
• Where he sees long-term support for ‘atoms' investment theme, which aligns with Royal London Asst Management's sustainable investing future.

What does all this mean for investment portfolios? 

Fill out the form below and visit the spotlight today to find out more.

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