Infrastructure Equities

Recent comments from SpaceX regarding Starlink's terrestrial wireless ambitions have prompted questions from investors about the long-term outlook for communications towers. While we continue to evaluate the potential implications, we do not currently view Starlink as a thesis-breaking risk to long-term U.S. tower growth. We believe the negative reaction in tower stocks reflects increased uncertainty rather than a material change in near-term fundamentals.

Railroads play a critical role in facilitating the efficient movement of goods and essential commodities in North America. Over the last thirty years, railroads have evolved from heavily regulated businesses with returns at or below their cost of capital into lightly regulated and capital-efficient networks distinguished by infrastructure that is difficult to replicate. This article discusses the investment merits of listed railroads and examines how the recent industry dynamics will impact future growth.

Global Listed Infrastructure are often considered a defensive “all-weather” asset class, as long-dated contracts provide predictable cash flows and inflation protection. In 2022 Global Listed Infrastructure outperformed the broader global equity and fixed income markets, driven by improving company fundamentals. In this outlook, we explain why we are optimistic that listed infrastructure companies can outperform in 2023.