A monthly review and outlook of the Global Listed Infrastructure sector.

Market review as at December 2017

The Global Listed Infrastructure benchmark gave up ground in December as positive sentiment and buoyant economic conditions saw higher beta areas of the market outperform. The FTSE Global Core Infrastructure 50/50 index declined -1.3% during the month, while global equities returned +1.4%.

The best performing infrastructure sector was Airports, which rallied on robust passenger volumes; capacity additions by European carriers including Lufthansa and Ryanair; and an upbeat macroeconomic backdrop. Pipelines regained ground following underperformance earlier in 2017 on improving fundamentals for the sector, while rising oil prices lent further support.

Electric, Multi and Gas Utilities faced several headwinds including the US Federal Reserve’s 25bps interest rate rise (the third for 2017) and muted investor appetite for defensive assets.

The best performing regions were Latin America and Asia ex- Japan, on keen investor demand for stocks with sensitivity to the improving global economy. The worst performing region was North America, where Pipeline and Railroad gains were offset by Utility softness.


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