- Infrastructure is critical to a well-functioning economy and society, but not all infrastructure assets are created equal. True diversification is key to building a defensive, resilient portfolio in line with the well-established infrastructure narrative.
- Despite the unprecedented drop in economic activity and carbon emissions, global warming is not going away. The drive to accelerate the pathway to a lower carbon future has gained renewed urgency.
- Uncertainty is here to stay. The way we live, work, travel and consume has changed and is likely to have long-lasting impacts on what and how infrastructure is delivered.
- We are confident that our long-term investment thesis and strategy, which prioritise the themes of technology, disruption and sustainability, are well placed for the rapid shift in the economic order.
In a turbulent 2020 infrastructure was an apparent safe haven, proving relatively resilient. However, the unprecedented shock to the asset class across all industry sectors and geographies at the same time, in a short period of time, has provided food for thought on several issues:
Third, despite the unprecedented drop in economic activity and carbon emissions, global warming is not going away. The drive to accelerate the pathway to a lower carbon future gained renewed urgency. At the same time the pandemic highlighted social inequalities and fragilities in our societies. The concept of business needing a social license to operate gathered momentum, fortifying investor appetite for social investing. European governments enshrined infrastructure investment as a means to stimulate the post-Covid economy via significant green fiscal packages.
With a supportive macro-economic environment and the promise of Covid-19 vaccines, we believe EM’s transition from export-led growth to reliance on buoyant domestic demand will assert itself more strongly than ever
Where do we believe we can find value in 2021 in core infrastructure? The answer is in the huge amount of investment needed to achieve Europe’s goal of a sustainable energy transition
All of which makes us confident that our long-term investment thesis and strategy, which prioritise the themes of technology, disruption and sustainability, are well placed for the rapid shift in the economic order.
We are excited about the years ahead. The powerful drive for a green recovery can only strengthen our investment thesis and result in more opportunity.
