A monthly review and outlook of the Global Listed Infrastructure sector.
Market review - as at April 2026
Global Listed Infrastructure built on strong March quarter performance as investor optimism outweighed an uncertain economic and geopolitical backdrop. The FTSE Global Core Infrastructure 50/50 index returned +3.6% in April, while the MSCI World index ^ ended the month +9.6% higher.
The best performing infrastructure sectors included Towers / Data Centers (+10%) and Railroads (+9%). Mobile towers gained on reports that US operator SBA Communications could be the subject of takeover interest from private equity. North American freight railroads increased on healthy March quarter earnings and indications that the long freight recession may be ending. The worst performing infrastructure sector was Airports (-1%), as an impasse between the main actors in the Middle East conflict weighed on the sector.
The best-performing infrastructure sector was Asia ex-Japan (+8%), owing to strong gains for the region’s utilities and port stocks. The worst-performing infrastructure sector was Japan (-5%), as concerns for rising input costs weighed on the country’s electric and gas utilities.
^ MSCI World Net Total Return Index (USD) is provided for information purposes only. Index returns are net of tax. Data to 30 April 2026. Source: Bloomberg, First Sentier Investors / Lipper IM. All stock and sector performance data expressed in local currency terms.
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 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 M&A activity within this space is expected to support earnings growth by providing scope for reliability improvements, faster transit times and cost efficiencies.
The portfolio also 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. While airports have lagged since the outbreak of hostilities between the US and Iran, we believe the magnitude of the earnings impact is likely to be less than market pricing currently reflects.
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 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 April 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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