Please read the following important information for First Sentier Global Listed Infrastructure Fund
• The Fund invests primarily in global listed infrastructure and infrastructure-related equity securities or equity related securities worldwide. Investments in infrastructure projects may involve risks including projects not being completed on time and within budget, changes in environment laws and regulations.
• The Fund’s investments may be concentrated in small number of companies/countries, a single country/sector, a specific region, a limited/specialist sector, or in fast growing economies which may have higher volatility or greater loss of capital than more diversified portfolios. The Fund may also expose to RMB currency and conversion risk.
• Small/ mid-capitalisation securities may have lower liquidity and their prices are more volatile to adverse economic developments.
• The Fund may use FDIs for hedging and efficient portfolio management purposes, which may subject the Fund to additional liquidity, valuation, counterparty and over the counter transaction risks
• For certain share classes, the Fund may at its discretion pay dividend out of capital or pay fees and expenses out of capital to increase distributable income and effectively a distribution out of capital. This amounts to a return or withdrawal of your original investment or from any capital gains attributable to that, and may result in an immediate decrease of NAV per share.
• It is possible that a part or entire value of your investment could be lost. You should not base your investment decision solely on this document. Please read the offering document including risk factors for details.
A monthly review and outlook of the Global Listed Infrastructure sector.
Market review - as at October 2025
Global Listed Infrastructure dipped in October, following strong ytd gains. The FTSE Global Core Infrastructure 50/50 index returned -0.7%, while the MSCI World index^ ended the month +2.0% higher.
The best performing infrastructure sector was Other (+6%), which consists of lower quality assets like ports, satellites and merchant power. Gains in this segment were led by satellites and Emerging Markets port stocks. Toll Roads (+4%) also delivered solid returns, supported by robust earnings numbers and healthy traffic volumes. The worst performing infrastructure sector was Energy Midstream (-8%), which fell on concerns about the sector’s growth outlook. Energy prices have been falling on weak demand, robust supply and easing geopolitical tensions.
The best performing infrastructure region was the UK (+6%), where electric and water utility stocks benefitted from lower bond yields. The worst performing infrastructure region was Canada (-3%), reflecting weakness in its large-cap energy midstream stocks.
^ MSCI World Net Total Return Index (USD) is provided for information purposes only. Index returns are net of tax. Data to 31 October 2025. Source: Bloomberg, First Sentier Investors / Lipper IM. All stock and sector performance data expressed in local currency terms.
Fund performance
The Fund delivered flat returns after fees in October, 77 basis point ahead of the FTSE Global Core Infrastructure 50/50 Index (USD, Net TR).
The best performing stock in the portfolio was RWE (+12%), a German-listed utility which is transforming from a conventional power producer to one of the world's largest renewable energy generators. The company extended its recent strong run, supported by the view that its European and US renewables businesses and German natural gas-fired power plants are well positioned to benefit from rising demand for power across developed markets. National clean energy targets in the UK and Germany are also expected to prove supportive as its business evolves.
Large-cap US utility and renewables developer NextEra Energy (+8%) released better-than-expected September quarter earnings results, supported by higher electricity demand from customers of its Florida Power & Light utility business. The company also announced plans to recommission Iowa’s Duane Arnold nuclear power plant to provide electricity to Google under a 25-year power purchase agreement. US-listed renewables developer AES Corp (+7%) climbed strongly at the start of the month following reports that it may be an acquisition target for BlackRock subsidiary Global Infrastructure Partners. The news further underscores growing investor interest in electricity generation assets amid rising power demand.
US-listed data centre Equinix (+8%) gained after announcing healthy September quarter earnings numbers, reflecting robust underlying demand for its portfolio of over 250 data centres across 36 countries. EBITDA increased 10% for the quarter while gross bookings increased 25%, signalling further growth ahead. The company also reiterated plans to build out additional data centre capacity to help meet this accelerating global demand.
Brazil’s largest toll road operator Motiva (+7%) was buoyed by solid earnings growth during the September quarter, aided by consistent traffic volumes and disciplined cost management. Broader strength in Brazil’s equity market also provided a tailwind for the stock. Australian peer Transurban (+5%) ended the month higher, benefitting from solid volumes across its urban road networks with group traffic +2.7% during the September quarter. Easing bond yields provided additional support. In contrast, Mexican operator PINFRA (-4%) gave up some of its strong recent gains after announcing disappointing September quarter earnings numbers, as higher maintenance costs weighed on margins.
The worst performing stock in the portfolio was Mexican airport operator GAP (-11%), which operates twelve airports throughout Mexico’s Pacific region, as well as Montego Bay and Kingston airports in Jamaica. The company announced weak September quarter results as lower-than-expected aeronautical tariffs offset strong performance from its commercial segment (retail, parking). Towards the end of the month, operations at the company’s Jamaican airports were disrupted as Hurricane Melissa swept through the Caribbean. Airport damage was less than feared and operations resumed in early November.
Cheniere Energy (-10%), the largest US Liquefied Natural Gas exporter, underperformed despite reaffirming 2025 earnings guidance and noting that it had bought back US$1 billion of its own shares during the September quarter – equivalent to ~0.7% of shares on issue. The stock fell as earnings numbers narrowly missed market expectations, owing primarily to slightly lower margins. Peers ONEOK (-8%) and Targa Resources (-7%) also underperformed as investors maintained a cautious stance towards the energy midstream space.
Fund activity
No stocks were added to the portfolio during October, and positions in existing holdings were generally maintained at current weights.
Market outlook and Fund positioning
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.
The asset class remains supported by several structural growth drivers. Electric utilities, particularly in the US, face higher capital expenditure needs to meet the substantial increases in electricity demand being driven by Artificial Intelligence (AI), data centres, onshoring of manufacturing and broader electrification trends. As well as additional power plants, utilities also need to expand, modernise and strengthen electricity transmission and distribution grids. Under US utility regulation, higher amounts of capex spent in this way typically leads to rate base growth, which ultimately supports higher earnings growth.
Digitalisation is another key theme for the asset class. Data centers benefit from companies seeking the improved reliability and flexibility offered by migrating IT equipment from on-premises to a combination of colocation services and cloud computing. Additionally, the surge of interest in AI is driving data center demand, as well as boosting the need for electricity.
We expect structural growth in demand for mobile data, underpinned by increasing reliance on digital connectivity, to support steady revenue growth in the mobile tower sector. While recent consolidation activity within the US, Spanish, French and Italian telecom sectors (mobile towers’ primary customer base) has raised concerns about customer churn rates, longer-term growth drivers remain. The adoption of 5G technology over coming years will require networks to handle increased data speed, lower latency, and a much higher number of connected devices.
Continued M&A activity and the potential divestment of non-core assets represent additional sources of support for valuation multiples across the asset class. Recent months have seen brisk corporate activity levels, driven by industry consolidation and the acquisition of public market assets by private market operators. We expect this to continue, aided by a pro-business US administration, strong demand for infrastructure assets and rising financing needs for global listed infrastructure investment programs.
Source : Company data, First Sentier Investors, as of 31 October 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.
Global Listed Infrastructure
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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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Important Information
Investment involves risks, past performance is not a guide to future performance. Refer to the offering documents of the respective funds for details, including risk factors. The information contained within this material has been obtained from sources that First Sentier Group believes to be reliable and accurate at the time of issue but no representation or warranty, expressed or implied, is made as to the fairness, accuracy or completeness of the information. To the extent permitted by law, neither First Sentier Group, nor any of its associates, nor any director, officer or employee accepts any liability whatsoever for any loss arising directly or indirectly from any use of this. It does not constitute investment advice and should not be used as the basis of any investment decision, nor should it be treated as a recommendation for any investment. The information in material may not be edited and/or reproduced in whole or in part without the prior consent of First Sentier Group. Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of First Sentier Group’s portfolios at a certain point in time, and the holdings may change over time.
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