Global Listed Infrastructure monthly review and outlook

Global Listed Infrastructure delivered solid gains in November against a backdrop of macroeconomic uncertainty and concerns for high tech / AI valuations. The FTSE Global Core Infrastructure 50/50 index^{^} returned +3.3%, while the MSCI World index ended the month +0.3% higher.  

The best performing infrastructure sector was Energy Midstream (+6%) as investors identified value following a recent period of underperformance. Robust earnings numbers and a positive demand outlook provided additional support. Towers / DCs (+1%) were among the worst performing infrastructure sectors, owing to lingering concerns about potential headwinds to mobile towers’ growth prospects. 

The best performing infrastructure region was Japan (+11%). The country’s electric utilities rallied as the re-start of TEPCO’s Kashiwazaki-Kariwa nuclear power plant - which has been idled since the 2011 Fukushima disaster - raised hopes that other re-starts may follow. The worst performing infrastructure region was the UK (+1%) as persistent concerns for the country’s fiscal situation weighed on sentiment towards its regulated utility stocks.

^{^} MSCI World Net Total Return Index (USD) is provided for information purposes only. Index returns are net of tax. Data to 30 November 2025. Source: Bloomberg, First Sentier Investors / Lipper IM. All stock and sector performance data expressed in local currency terms.

The Fund returned +2.2% after fees in November, 112 basis points behind the FTSE Global Core Infrastructure 50/50 Index (USD, Net TR). 

The best performing stock in the portfolio was US-listed utility / energy midstream company UGI Corp (+18%). The business consists of four distinct segments; regulated gas utilities in Pennsylvania and West Virginia; energy midstream in the Appalachia region; propane distribution in the US (AmeriGas Propane); and propane distribution in Europe (UGI International). The stock gained after better-than-expected earnings numbers for the September quarter showed that the company is managing to implement meaningful operational improvements, following recent changes to its management team. Investors also welcomed an increase to long-term earnings growth guidance, from 4%-6% to 5%-7%. An unusually cold start to the eastern US winter is expected to provide a near-term earnings tailwind to the company’s gas utilities.

Danish offshore wind farm developer Ørsted (+18%) rose steadily through the month as investors warmed to its recent strategic shift of prioritising the completion of its existing wind farm projects over future growth opportunities. Company updates indicate that construction work on its main offshore wind projects is progressing smoothly. During the month, the company sold a 50% stake in its Hornsea 3 wind farm in the North Sea to US investment firm Apollo Global Management for DKK39 billion (approximately US$6 billion), further improving its financial stability.  

Mexican airport company GAP (+15%) was buoyed by news that Brazil toll road operator Motiva (+1%, held) had sold its portfolio of South American airports to Mexican airport operator ASUR (+1%, not held) for R$11.5 billion (US$2.2 billion). Concerns that GAP could acquire (and potentially overpay for) these assets had previously weighed on its share price. During the month, GAP also announced that it had acquired the Tijuana Cross Border Express – a strategically-located landside terminal connecting the US to Tijuana Airport in Mexico – for US$400 million. 

Houston-based energy midstream stock Targa Resources (+14%) delivered better-than-expected earnings numbers for the September quarter, underpinned by robust natural gas and Natural Gas Liquids volumes across its Permian Basin service territory. The company continues to build out its energy infrastructure networks to ease congestion points and meet rising demand for its services. It also raised its dividend by 25%, upgraded its earnings guidance for 2025 and expressed confidence in the outlook for 2026. Peers DT Midstream (+11%) and ONEOK (+10%) were buoyed by the generally favourable operating environment. However, Cheniere Energy (-1%) lagged on concerns for rising competition, while the prospect of a potential peace agreement between Russia and Ukraine raised concerns that European demand for its US LNG exports may decline over the longer term.  

The worst performing stock in the portfolio was Italy’s leading mobile tower company Inwit (-15%), which owns and manages a portfolio of over 20,000 mobile towers and rooftop sites across the country. Lower inflation and the absence of a hoped-for recovery in investment levels by its telecom clients saw it reduce earnings guidance for the 2026 – 2030 period to the lower end of its range. The stock’s ~7% dividend yield is likely to provide valuation support at current levels.   

US-listed data centre Equinix (-10%) gave up its gains from the previous month. In the absence of material stock-specific news, its share price appears to have been affected by broader market concerns around technology sector valuations and macroeconomic uncertainty. Equinix operates primarily in the retail co-location space (i.e. providing space for companies to house their servers and other IT infrastructure) with a small presence in hyperscale (used by large tech companies to run cloud platforms and AI training). Chinese-listed tower operator China Tower (+10%), which operates a portfolio of 2.1 million tower sites, gained on the appeal of its clear revenue visibility, underpinned by contracts with China’s largest telecom providers. Lower depreciation (a non-cash expense that reduces reported net income) and disciplined cost control are expected to prove supportive of profit growth. 

Holdings in Japanese and Chinese transport infrastructure stocks lagged as diplomatic tensions flared between the two countries. Comments about Taiwan, made by the Japanese prime minister, led the Chinese government to issue a travel warning on 14 November. This resulted in flight cancellations and a fall in the number of people travelling from China to Japan. Japan Airport Terminal (-6%), the owner and operator of the terminals at Japan’s Haneda Airport in Tokyo, and West Japan Railway (-2%), whose passenger rail network includes the popular tourist destinations of Osaka and Kyoto, were both affected by these developments. Beijing Airport (flat) also delivered lacklustre returns for the month.

A position in French-listed airport and toll road operator Vinci was sold following pleasing share price gains this year, and on concerns that the unstable political environment in France could result in populist measures such as tariff freezes or higher taxes on infrastructure concessions.   

The Fund 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.

Toll roads remain the portfolio’s largest sector overweight. Their domestically focused business models give them limited direct sensitivity to tariffs or trade restrictions. Revenues are typically robust, supported by consistently high operating margins. Pricing is often linked to inflation, with negotiated compensation for additional capital expenditure. Over the medium term, additional road capacity will be needed to ease urban congestion in the developed world and to support economic development in the developing world. In the absence of sufficient government funding, toll road operators are well-positioned to meet this need.

The portfolio is also overweight towers / data centres. We continue to expect structural growth in demand for mobile data, underpinned by increasing reliance on digital connectivity, to support steady earnings growth in the mobile tower sector. While recent consolidation activity within the US telecom sector (mobile towers’ primary customer base) has raised concerns about customer turnover rates, longer-term growth drivers remain. Data centers are benefitting from companies seeking the improved reliability and flexibility offered by cloud computing, and from the surge of interest in AI which is also driving data center demand. 

Utilities / renewables make up a substantial part of the portfolio. These stocks are set to benefit from unprecedented growth in demand for electricity, being 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 also likely to support demand for natural gas as a feedstock for gas-fired power plants, creating additional growth opportunities for US-based energy midstream companies.

Source : Company data, First Sentier Investors, as of 30 November 2025.

These figures refer to the past. Past performance is not a reliable indicator of future results. For investors based in countries with currencies other than the base currency of the share class, the return may increase or decrease as a result of currency fluctuations. Performance data calculated since the launch date. Performance data is calculated on a net basis by deducting fees incurred at fund level (e.g. the management and administration fee) and other costs charged to the fund (e.g. transaction and custody costs), save that it does not take account of initial charges or switching fees (if any). Income reinvested is included on a net of tax basis. First Sentier Global Listed Infrastructure Fund, Class I (Distributing) USD shares. Benchmark is the FTSE Global Core Infra 50/50 TR Index from 1 April 2015, prev. UBS Global Infra & Utilities 50/50 TR Index.