A monthly review and outlook of the global listed infrastructure sector.
Market review - as at August 2017
Global listed infrastructure climbed in August as investors looked past mounting geopolitical tensions to focus on an improving economic environment and generally robust earnings numbers.
The best performing sector was Towers. Demand for this cash generative sector was underpinned by positive earnings numbers and continued evidence of structural growth in mobile data. The worst performing sector was Pipelines. Although quarterly earnings results were largely in line with expectations, evidence of weakness in crude oil and Natural Gas Liquids margins raised concerns for the sector.
The best performing region was Australia / NZ. Australian toll roads, airports and utilities rallied on well-received earnings numbers and investor demand for yield, as US bond yields trended lower. The worst performing region was Latin America (flat), where slowing passenger growth rates weighed on Mexican airports. More positively, Brazil proposed a significant extension to its infrastructure privatisation program of airport, toll road, port and utility assets.
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