Feature

At the time of writing, UK equity benchmarks have fallen by approximately one-third from their year-to-date highs.

After a torrid three weeks, financial markets stabilised in recent days in response to the stimulus packages announced both by central banks and governments.

The Covid-19 pandemic has resulted in enormous uncertainty regarding the outlook for the global economy and markets.

Listed infrastructure was certainly not immune to the coronavirus-related market downturn in March.

The global spread of the coronavirus led to a simultaneous shock on both the supply and the demand side of the affected economies.

Coronavirus lockdown

We cannot predict when markets will finally reach a bottom – they may already have – but we believe it is most likely to be once we hit a peak in the daily growth in new Covid-19 cases round the world.

Investors could be forgiven for thinking that nowhere is an immediately appealing prospect for investment right now, least of all Europe.

The disruption to the global economy from the worldwide spread of the coronavirus is the biggest shock to the world since the Second World War.

The infrastructure sector is seen, with good reason, as a solid alternative asset class with which to diversify an investment portfolio.