A monthly review and outlook of the Global Listed Infrastructure sector.
Market review - as at June 2026
Global Listed Infrastructure rose in June, supported by robust fundamentals and generally positive demand dynamics. The FTSE Global Core Infrastructure 50/50 index rose by +1.2% in June, while the MSCI World index ^ ended the month -0.7% lower.
The best performing infrastructure sector was Airports (+5%), which advanced following an interim agreement between the United States and Iran to open the Strait of Hormuz. The resulting fall in oil prices led to hopes of lower airline ticket prices and potentially higher airport passenger volumes. The worst performing infrastructure sector was Towers/Data Centers (-12%), reflecting mounting concerns for competitive pressure and the withdrawal of previously anticipated takeover interest.
The best performing infrastructure region was Latin America (+3%), as Mexico’s airport operators led the region higher. The worst performing infrastructure region was Australia/New Zealand (-5%), reflecting weakness in its toll road and data center stocks.
^ MSCI World Net Total Return Index (USD) is provided for information purposes only. Index returns are net of tax. Data to 30 June 2026. Source: First Sentier Investors UK Funds Limited/Lipper IM.
Market outlook and strategy
The strategy invests in a range of listed infrastructure assets including toll roads, airports, railroads, utilities and renewables, energy midstream, wireless towers and data centers. These sectors share common characteristics, like barriers to entry and pricing power, which can provide investors with inflation-protected income and strong capital growth over the medium term.
The portfolio has overweight exposure to airports. The sector is well-positioned to benefit from the ongoing drivers behind global travel demand growth; wealthy baby boomers with money to spend on travel during their retirement, Gen Z prioritising experiences over possessions, and growing middle classes in Asia and Latin America. Having lagged following the outbreak of hostilities between the US and Iran, we believe there is further scope for recovery, even after the sector’s strong June performance.
The portfolio is overweight railroads, via holdings in US freight rail operators and European and Japanese passenger rail stocks. North American freight rail companies represent a key component of the continent’s transportation system and are a core part of the global listed infrastructure opportunity set. Proposed mergers & acquisition (M&A) activity within this space is expected to support earnings growth by providing scope for reliability improvements, faster transit times and cost efficiencies.
Utilities/renewables make up a substantial part of the portfolio. These stocks are benefiting from unprecedented growth in demand for electricity, driven by the needs of Artificial Intelligence (AI) and data centers, as well as industrial onshoring and a broad-based move towards electrification. Earnings growth rates for US utilities have already begun to accelerate due to the required investment to support greater demand for power. In the event of an economic downturn, utility earnings are likely to prove relatively resilient, owing to their regulated earnings frameworks and essential service nature.
The portfolio is underweight energy midstream. Within this space, the portfolio has overweight exposure to faster-growing US energy midstream stocks but is substantially underweight Canadian companies, which tend to have higher leverage and slower growth. Rising demand for electricity in the US, as well as being positive for utilities, is supporting demand for natural gas as a feedstock for gas-fired power plants, with scope to create additional growth opportunities for US-based energy midstream companies. The Ukraine and Iran conflicts also provide opportunities for North American energy midstream companies to serve export markets by providing a relatively cheap and reliable source of LNG and Natural Gas Liquids.
Source : Company data, First Sentier Investors, as of 30 June 2026.
Global Listed Infrastructure
Infrastructure powers the world we live in – and when it comes to on-the-ground research, our team can be found on site
Investing in global listed infrastructure can offer inflation-protected income and steady capital growth from real assets delivering essential services. We search for best-in-class assets worldwide with high barriers to entry, structural growth and pricing power.
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