Global listed infrastructure: The quiet achiever

Global listed infrastructure (GLI) combines defensive cash-flow characteristics with upside from economic and structural growth, making it an attractive asset class and compelling diversifier in portfolios. Listed infrastructure generates predictable contract- or regulation-backed cash flows that support durable dividend yields and provide inflation protection.

The listed format also provides investors with liquidity and easier reweighting than unlisted infrastructure, while still delivering exposure to long-life real assets that provide critical services and to secular themes such as the energy transition and digitalisation.

Overview of 2025 performance

The FTSE Developed Core 50/50 Infrastructure index delivered 17.7% returns[1] through to the end of November CY25, just 50bps below global equities (MSCI World) but with significantly lower volatility. Illustrated in the chart above, GLI has delivered attractive long-term risk-adjusted returns and, consistent with its long-term downside capture of 61%, has demonstrated meaningful protection this year[2].

What 2026 holds for Global Listed Infrastructure

The infrastructure investment landscape is being reshaped by mega-forces that are accelerating, not slowing down. AI-driven electricity demand continues to surge as data centres proliferate, while the broader energy transition requires massive grid upgrades to handle renewable generation. We're seeing U.S. utilities investing heavily in grid resilience to manage both increased demand and the complexities of integrating cleaner energy sources.

Beyond electricity networks, transportation infrastructure continues to grow with toll roads benefiting from congestion, and U.S. railroads could see meaningful consolidation in 2026, potentially unlocking latent value in the sector.

Despite an accelerating growth outlook, we believe valuations for quality listed infrastructure assets have not priced this in, as the chart below demonstrates. As economic uncertainty persists, infrastructure's defensive characteristics look increasingly attractive.

SSE represents the highest quality infrastructure opportunity we see today. The Scottish-based utility owns irreplaceable electricity network assets across the UK, alongside a portfolio of long-term contracted renewable energy projects. These are resilient cash flows with embedded inflation linkage.

What makes SSE particularly compelling is the growth profile. The company's regulated assets are growing at 25% annually through 2030, driven primarily by transmission investment. The UK needs these network upgrades to achieve its clean energy goals, and the government has made grid investment a priority. The UK understands the need to incentivise this capital deployment and has adjusted allowed returns upwards. This creates a tailwind for earnings that compounds with the volume growth from increased investment.

The renewables business adds another dimension, growing at 12% annually with high-quality projects and significant optionality for future development. SSE recently raised equity to strengthen its balance sheet, positioning the company to execute its ambitious growth plans with confidence. At 11.7x March 2027 earnings for high-quality assets delivering high-single-digit earnings growth, the valuation appears attractive.

The opportunity ahead

Earnings growth across infrastructure is accelerating. The outlook for growth in this asset class is stronger than ever, driven by multi-year investment cycles and a capex supercycle that is only just beginning. Yet infrastructure maintains its defensive characteristics – stable cash flows from essential assets, inflation protection, and proven downside resilience.

This defensive growth profile is rare. Infrastructure offers real growth potential alongside diversification benefits, making it ideal for compounding real returns over time while generating income. As we look toward 2026, the combination of improving fundamentals, supportive policy frameworks, and reasonable valuations creates a compelling case for infrastructure exposure.

Please note, this wire is part of Livewire's Ultimate Investing Guide for 2026. The full guide is available for download here.