- 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.
For further details see:
Infrastructure Outlook: Defensive Growth, Or Just Defense?