“Infrastructure is not just about income and inflation protection, it should offer an attractive total return,” says Bushby, adding that the firm’s infrastructure fund has been able to generate a yield of 5–5.5% a year, along with capital growth over the past 12 years.
A mid high volatility in the equity markets, infrastructure and utility assets continue to perform well — supported by stable cash flows, growing dividends, essential services nature as well as their abilities to pass through inflation. The potential of investing in the asset class is brought to light especially as the energy crisis worsens in certain parts around the world.
ClearBridge Investments managing director and head of infrastructure business development Matt Bushby says there are some tailwinds and themes driving strong performance for funds investing in infrastructure and utilities assets. This includes post-Covid mobility restrictions as well as attractively priced assets in listed markets for private infrastructure capital.
