RYU - Infrastructure Outlook: Defensive Growth Or Just Defense?

• In an uncertain macroeconomic environment, the certainty of future earnings and growth will be key: infrastructure and utilities significantly outperform other equities on this measure.
• With a base case of slowing growth and higher inflation, our playbook for infrastructure portfolios is to watch for a transition from a growth to a more defensive orientation.
• Generally, user-pays infrastructure and utility returns are positively correlated to inflation, but results differ by sector and region; meanwhile, climate inflation looms and is underappreciated at present.

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