A monthly review and outlook of the Global Listed Infrastructure sector.
Market review - as at November 2017
Global listed infrastructure gained in November as healthy economic data continued to buoy investor confidence. The FTSE Global Core Infrastructure 50/50 index (USD, Net TR) rose +1.7% during the month, while global equities returned +2.2%.
The best performing infrastructure sectors were Railroads, Water Utilities and Airports. US railroads gained as momentum built on legislation to cut corporate taxes; while US September quarter GDP was revised up to a three-year high of 3.3%. Water utilities were helped by solid returns for US-listed operators. Airport gains were led by European operators, on robust passenger volumes and airline capacity increases.
The worst performing sector was Ports, which gave up some of their strong ytd returns after plans were announced to reduce container handling tariffs at several Chinese ports in order to reduce logistics costs for export industries.
The best performing region was Australia / NZ, whose utilities, toll roads and airports were lifted by a robust domestic economy and lower local bond yields. The worst performing region for a third consecutive month was United Kingdom, where the precarious political situation continued to weight on infrastructure stocks.
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