One key characteristic of much of the infrastructure sector has been demonstrated during the pandemic: much of “infrastructure” comprises essential services, without which society cannot function.
“So you look at electricity you look at communications networks like US railroad networks, all of these essential services carried on pretty much as normal through the whole lockdown period,” said Jim Wright, infrastructure fund manager, Premier Miton Investors,
The main exceptions were those areas of transport infrastructure engaged with moving people. “So airports, toll roads, those kind of stocks obviously saw passenger volumes fall dramatically. There will be a trajectory of recovery for each asset in each geography,” Wright added.
Premier Miton is a UK-based asset manager with approximate AUM of £14 billion in across different asset classes. “We invest in infrastructure equities around the globe,” Wright said in conversation with Real Asset Insight’s Richard Betts.
A major preoccupation for the sector is energy transition – the preparation for Net Zero. “This is probably the biggest impact investment theme in my lifetime, the move to decarbonise the power generation sector, decarbonising transportation, decarbonising heating and all of those impacts on the property sector.”
Click on the video above to watch the full interview or listen to the podcast below.