Home Insights Listed infrastructure 2025 Global Listed Infrastructure Annual Outlook

2025 Global Listed Infrastructure Annual Outlook

February 14, 2025
Emily Foshag, CFA
Portfolio Manager, Listed Infrastructure
Nina Liu, CFA
Portfolio Specialist, Listed Real Assets
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Introducing our 2025 outlook

When the books closed on global markets at year end 2024, even the most steadfast investors in listed infrastructure (GLI)—us included—have been forced to face the sobering reality that GLI has underperformed global equities by a whopping 6.5 percent annualized over the prior five years.

Of course, it hasn’t all been painful, though we sometimes find ourselves pining for the increasingly distant 2022, when listed infrastructure’s inflation-protecting characteristics fully met the moment and GLI outperformed global equities by 14 percent. We also felt good about how the first nine months of 2024 evolved, with various central banks embarking on rate cuts and as U.S. utility and energy investors participated in the wave of generative AI enthusiasm. Although the most recent asset class performance has been frustrating, our team reached an important investment performance milestone last year—our five-year track record—and (mostly!) had fun doing it.

As we turn the page to a new year, the long-term risk and return profile of GLI continues to support its inclusion in portfolios.

Specific to 2025, we offer five reasons to be a buyer of the asset class:

  1. Today’s valuations offer an attractive entry point for long-term investors
  2. We expect fundamentals will continue to be strong
  3. A lot was priced into markets post-U.S. election, and some near-term reversion could benefit pockets of GLI
  4. It may be a good time to complete your private infrastructure allocation with GLI
  5. Diversifying your equity exposure continues to make sense

We conclude with a brief discussion of the main reasons investors may wish to remain on the sidelines for one more year.

As we turn the page to a new year, the long-term risk and return profile of GLI continues to support its inclusion in portfolios. For more of our thoughts, read the full 2025 outlook here.

Listed Infrastructure
Real estate
Disclosure

Important information

Risk Considerations
Investing involves risk, including possible loss of principal. Infrastructure issuers may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, operational or other mishaps, tariffs and changes in tax laws, regulatory policies and accounting standards. Foreign securities involve special risks, including currency fluctuations, lower liquidity, political and economic uncertainties and differences in accounting standards. Some international securities may represent small and medium-sized companies, which may be more susceptible to price volatility and may be less liquid than larger companies.

Important information
This material covers general information only and does not take account of any investor’s investment objectives or financial situation and should not be construed as specific investment advice, a recommendation, or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding an investment or the markets in general. The opinions and predictions expressed are subject to change without prior notice. The information presented has been derived from sources believed to be accurate; however, we do not independently verify or guarantee its accuracy or validity. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that the investment manager or its affiliates has recommended a specific security for any client account.

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This material may contain ‘forward looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

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MM14333 | 02/2025 | 4083959-122026
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