- Infrastructure spending looks set to rise
- Infrastructure can provide defensive, non-cyclical growth and inflation resilient income
- First Sentier Global Listed Infrastructure offers exposure to various infrastructure sub sectors globally and is run by a highly experienced team
Last week US President Joe Biden set out plans to spend around $2tn (£1.44tn) on infrastructure in the US over the next 10 years. More generally, governments across the world are looking to improve weak economic fundamentals through infrastructure and green energy stimulus plans, which could benefit many global listed infrastructure companies. And when the coronavirus is more under control, there could also be a recovery in traffic and passenger volumes in sectors such as toll roads, airports and passenger rail.
As it is, money is already being spent on infrastructure. The ongoing repair and replacement of old energy transmission and distribution grids, and the accelerating build-out of renewables could represent a steady source of utility earnings growth over long timeframes.