A monthly review and outlook of the Global Listed Infrastructure sector.
Market review - as at February 2026
Global Listed Infrastructure rallied strongly during February, buoyed by investor demand for assets deemed less vulnerable to disruption by Artificial Intelligence (AI). The best performing infrastructure sector was Railroads (+12%), with North American freight rail stocks buoyed by an unexpectedly positive US manufacturing PMI reading for January. Improving manufacturing sentiment bodes well for future freight haulage volumes.
Energy Midstream (+11%) also outperformed in February, aided by solid December quarter earnings and a positive demand outlook for North American energy storage and transportation services.
The worst performing infrastructure sectors included Airports (+3%), which delivered relatively muted gains following lacklustre December quarter earnings and an outburst of cartel-related violence that weighed on sentiment towards Mexican operators.
The best performing infrastructure region was Canada (+12%), reflecting strong gains from its freight rail and energy midstream stocks. The worst performing infrastructure region was Latin America (+1%), where toll roads and airports lagged following strong returns over recent months.
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 end of February / early March saw a sharp increase in geopolitical uncertainty as Israel and the US launched a military operation against Iran. While the situation remains fluid, unfolding events have several potential implications for global listed infrastructure.
The airports sector is likely to be the most sensitive to ongoing conflict in the region, as regional disruption reduces willingness to travel. A sustained higher oil price leading to higher airfares would also represent a headwind for airport volumes. The portfolio does not hold any airport stocks with material direct exposure to the Middle East.
Conversely, higher energy prices are likely to prove supportive of US energy midstream stocks. Iranian attacks on crucial energy infrastructure in the region, or the closure of the Strait of Hormuz in the Persian Gulf, could push oil and natural gas prices higher. In the near term, US LNG exporter Cheniere Energy could benefit if Qatari LNG customers begin to seek alternative sources of supply. Other portfolio holdings with (marginal) LNG exposure include Sempra and ENN Energy. Over the longer term, a higher oil price would encourage more production from upstream customers, requiring more gathering, processing, transport, storage, and export infrastructure.
In other sectors, utilities will need to manage the impact that higher energy costs may have on customer bills. Within this space the portfolio is predominantly focused on US regulated utilities, which should be less affected than European or Asian peers. Over the longer term, an extended period of higher natural gas prices would reinforce the trend towards renewable energy, which would be supportive for portfolio holdings including Ørsted (offshore wind), National Grid (transmission) and NextEra Energy (US renewables). Disruption to global trade may also affect port stocks, which are not held by the portfolio.
More broadly, higher energy prices stemming from an extended period of conflict in the Middle East could push inflation higher and exert pressure on central banks to raise interest rates. We are confident that most infrastructure companies would be able to pass through the effects of higher inflation to consumers, via regulated or contracted pricing.
If the Iran conflict were to extend beyond a few weeks and have more significant impacts on economies and markets, global listed infrastructure would appear relatively well placed. The portfolio is domestically focused and should be largely immune from uncertainty in the Middle East region. We would expect ongoing rotation into defensive sectors, which has been a supportive trend so far this year. We note that during previous market downturns, global listed infrastructure’s beta to global equities has typically ranged between 0.5 and 0.6.
Source: Bloomberg and First Sentier Investors as at 28 February 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.
Read our latest insights
Important Information
This material is prepared by First Sentier Investors (Singapore) (Co. Reg No. 196900420D) whose views and opinions expressed or implied in the material are subject to change without notice. To the extent permitted by law, First Sentier Group accepts no liability whatsoever for any loss, whether direct or indirect, arising from any use of or reliance on this material. This material is published for general information and general circulation only and does not have any regard to the specific investment objectives, financial situation and particular needs of any specific person who may receive this material. Investors may wish to seek advice from a financial adviser and should read the Prospectus, available from First Sentier Investors (Singapore) or any of our Distributors before deciding to subscribe for the Fund. In the event that the investor chooses not to seek advice from a financial adviser, he should consider carefully whether the Fund in question is suitable for him. Past performance of the Fund or the Manager, and any economic and market trends or forecast, are not indicative of the future or likely performance of the Fund or the Manager. The value of units in the Fund, and any income accruing to the units from the Fund, may fall as well as rise. Investors should note that their investment is exposed to fluctuations in exchange rates if the base currency of the Fund and/or underlying investment is different from the currency of your investment. Units are not available to US persons.
Applications for units of the Fund must be made on the application forms accompanying the prospectus. Investments in unit trusts are not obligations of, deposits in, or guaranteed or insured by First Sentier Investors (Singapore), and are subject to risks, including the possible loss of the principal amount invested.
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.
In the event of discrepancies between the marketing materials and the Prospectus, the Prospectus shall prevail.
In Singapore, this material is issued by First Sentier Investors (Singapore) whose company registration number is 196900420D. This advertisement or material has not been reviewed by the Monetary Authority of Singapore. First Sentier Group (registration number 53507290B), First Sentier Investors (registration number 53236800B), FSSA Investment Managers (registration number 53314080C), Stewart Investors (registration number 53310114W), RQI Investors (registration number 53472532E) and Igneo Infrastructure Partners (registration number 53447928J) are the business names of First Sentier Investors (Singapore).
First Sentier Investors (Singapore) is part of the investment management business of First Sentier Group, which is ultimately owned by Mitsubishi UFJ Financial Group, Inc. (“MUFG”), a global financial group. First Sentier Group includes a number of entities in different jurisdictions.
To the extent permitted by law, MUFG and its subsidiaries are not responsible for any statement or information contained in this material. Neither MUFG nor any of its subsidiaries guarantee the performance of any investment or entity referred to in this material or the repayment of capital. Any investments referred to are not deposits or other liabilities of MUFG or its subsidiaries, and are subject to investment risk, including loss of income and capital invested.
© First Sentier Group
 |  |
|---|