Scroll
Scroll

We need to talk about infrastructure

Throughout history economic and societal growth has been powered by infrastructure, from the industrial revolution to today's digital revolution.

Infrastructure spans all facets of modern day life, from utilities that power our economies and supply water to our communities; airports, rail networks, ports and highways that connect people and businesses; telecom and digital infrastructure that underpin the 21st century economy.

Infrastructure is the backbone of our societies.
Physical systems enabling energy, transport, water and digital connectivity.
Unnoticed in operation, critical in failure.

Infrastructure today

Source: McKinsey September 2025, The infrastructure moment

It's estimated that US$106 trillion in investment will be required by 2040 for new and updated infrastructure.

Source: McKinsey September 2025, The infrastructure moment

How the projected US$106 trillion infrastructure investment is allocated by sector

  • $36 trillion Transportation
  • $23 trillion Energy
  • $19 trillion Digital
  • $16 trillion Social
  • $6 trillion Waste and water
  • $5 trillion Agriculture
  • $2 trillion Aerospace and defense
light map dark map
Geopolitics
Ageing
infrastructure
Strain on energy, water and transport systems
Power demand growth
Global transition to cleaner energy
Urbanisation and changing demographics

Infrastructure is under pressure

Ageing infrastructure systems continue to buckle under the strain of prolonged use.

New technologies are turbocharging rising power demands. Changing geopolitics have underlined the vulnerability of critical infrastructure and the need for resilient infrastructure networks.

System pressure

Recent headlines suggest an acceleration in infrastructure investment is needed

Real-World Events

Power outages and blackouts

Source: Electricity 2026 - Analysis - IEA

36% increase
Year-on-year growth in global electricity demand to 2030.

Source: Grids - Electricity 2026 - Analysis - IEA.

Over 2,500 GW
Of infrastructure projects are waiting to be connected to the grid.
Real World Events

Water shortages

Drought impacts are becoming steadily more human-made and extremely costly. These droughts are caused by overuse and degradation rather than natural weather patterns alone.

Source: World Enters “Era of Global Water Bankruptcy” UN Scientists Formally Define New Post-Crisis Reality for Billions | United Nations University.

US$307 billion
Per year, cost of human-caused droughts.

Source: Partnerships and cooperation for water | UN World Water Development Report 2023

50% of the global urban population
could face water scarcity by 2050.

What makes this a compelling investment opportunity

Infrastructure businesses sit at the centre of long-term structural themes including power demand growth, urbanisation, AI and digital infrastructure, and decarbonisation.

Why invest and why it matters

Accessing the infrastructure opportunity through long-lived physical assets that we believe have a sustainable competitive advantage, supported by resilient business models and long-term demand.

Key characteristics

  • 01 Protected by regulation

    Certain infrastructure assets that produce attractive returns that are set and protected by regulation or long-term contracts.

  • 02 Stable long-term contracts

    Infrastructure assets often operate with predictable and recurring revenue streams supported by long-duration contracts.

  • 03 Sustainable competitive advantage

    Companies with enduring physical assets that possess a sustainable competitive advantage.

  • Electricity, gas and water networks

  • Renewable power generation

Company example

Companhia de Saneamento Basico do Estado de Sao Paulo (Sabesp) is the largest water and waste management company in Latin America. It serves nearly 30 million people with water and over 27 million with sewage collection.

  • Gas pipelines

  • Natus error sit voluptatem

Source: Energy Infrastructure for a Sustainable Future - ENGIE.

Company example

ENGIE operates in 30 countries, delivering power, gas and heat while supporting the transition to lower-carbon systems. It operates Europe's largest gas transmission and distribution network, as well as Europe’s largest natural gas storage capacity.

  • Telecom

  • Data infrastructure

  • Specialised real estate

Source: Investor Relations Overview | American Tower .

Company example

Singapore Telecom is a telecommunications conglomerate, the country's principal fixed-line operator and one of the four major mobile network operators operating in the country. It owns a portfolio of telecom assets in Singapore and Australia, and a stake in Asia’s biggest datacentre owner.

Why now

The growth opportunity within infrastructure is significant and, in our view, underappreciated.

Investing in infrastructure is...

Consistent

Cash-flows can be highly predictable with consistent revenue streams, providing a source of income to the fund.

Future-Facing

Exposure to long-term growth themes including power demand, electrification and digital infrastructure demand.

Stable

Inflation-linked growth potential with attractive upside/downside characteristics and drawdown mitigation potential.

Tom Levering

Tom Levering

Equity Portfolio Manager

The current environment for infrastructure is the best I have seen in my near 30 years of investing, given growth expectations are at their highest and valuations aren’t reflecting that growth.