A monthly review and outlook of the Global Listed Infrastructure sector.
Market review - as at March 2026
Global Listed Infrastructure held up relatively well as Middle East conflict drove investors towards defensive assets. The best performing infrastructure sector was Energy Midstream (+5%), which gained as energy prices were driven higher by Iran-imposed restrictions on passage through the Strait of Hormuz and strikes on Persian Gulf energy processing and export facilities. Defensive infrastructure sectors such as Water / Waste (-1%) and Utilities / Renewables (-2%) also performed relatively well in this environment.
The worst performing infrastructure sector was Towers / Data Centres (-10%). US tower operators were affected as bond yields were pushed higher by mounting inflation concerns. Airports (-6%) fell on the view that passenger volumes may be affected by the crisis; both directly as Middle East airlines faced disruption and flight cancellations; and more broadly if higher fuel costs feed through to higher airline ticket prices and dampen longer-term demand.
The best performing infrastructure regions included the United States (-1%), owing to robust performance from its energy midstream and utility stocks. The worst performing infrastructure region was Asia ex-Japan (-7%), on concerns that it may prove vulnerable to the effects of tightening energy markets.
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.
As unfolding events in the Middle East continue to buffet financial markets, global listed infrastructure appears relatively well placed thanks to its essential service provision, domestic market focus and lack of direct exposure to the region. The asset class has delivered pleasing year-to-date returns, both in absolute terms and relative to global equities. We remain cautiously optimistic about its future prospects, owing in part to the long-term structural growth drivers that the asset class is positioned to benefit from.
Electric utilities, particularly in the US, face higher capital expenditure needs to meet the substantial increases in power demand. As well as building 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. 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.
The airport 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 prioritizing experiences over possessions, and growing middle classes in Asia and Latin America. While airports lagged in March, we believe the magnitude of the earnings impact is likely to be less than market pricing currently reflects. As a result, we have held our overweight position and looked to selectively add to the sector to capitalise on mispricing opportunities.
Source: Bloomberg and First Sentier Investors as at 31 March 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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