How to catch the inflation upside with infrastructure

Sarah Shaw

4D Infrastructure

The world is currently experiencing a period of very strong global economic growth, with productive economies reopening and vaccine rollout. This has been a product of the fiscal stimulus and monetary easing we experienced through 2020 in an attempt to keep the economy afloat. But with this extra money circulating comes natural concerns.

"Inflation is emerging, we are seeing signs of this all around the world at the moment. The US inflation number was at 5.4% in June; the fastest inflation growth in 30 years... Bloomberg said that the word 'inflation' was mentioned in 87% of the earnings calls for the S&P500 companies so far... In 2020, the equivalent number was 33%" 

Join me and Greg Goodsell, Global Equity Strategist & Principal at 4D Infrastructure, as we discuss why 4D is looking forward to an inflationary environment in the global recovery; and how COVID is contributing to M&A activity in the listed infrastructure space.

Timestamps

  • 1:21 – How stimulus has led to strong global economic growth; but also inflation.
  • 3:35 – The two current schools of thought on inflation levels (and which one 4D subscribes to).
  • 8:37 – How 4D can use infrastructure’s two distinct sub-sectors to take advantage of different points through the economic cycle (including an inflationary environment).
  • 13:06 – 4D’s current portfolio positioning to capture the inflation upside.
  • 15:22 – How airport passenger numbers are recovering globally as some countries start to ease COVID restrictions.
  • 17:49 – Why there has been an increase in M&A infrastructure activity, including the recent consortium bid for Sydney Airport.
  • 21:02 – Opportunities for 4D’s portfolio in the US infrastructure spending plan.
Listen to the podcast here

Invest across the globe

4D Infrastructure is a Bennelong Funds Management boutique that invests in listed infrastructure companies across all four corners of the globe. For more insights on global infrastructure, visit 4D’s website.

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The content contained in this wire represents the opinions of the authors. The authors may hold either long or short positions in securities of various companies discussed in the article. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely as an avenue for the authors to express their personal views on investing and for the entertainment of the reader. This information is issued by Bennelong Funds Management Ltd (ABN 39 111 214 085, AFSL 296806) (BFML) in relation to the 4D Global Infrastructure Fund (AUD Hedged), the 4D Global Infrastructure Fund (Unhedged) and the 4D Emerging Markets Infrastructure Fund. The Funds are managed by 4D Infrastructure, a Bennelong boutique. This is general information only, and does not constitute financial, tax or legal advice or an offer or solicitation to subscribe for units in any fund of which BFML is the Trustee or Responsible Entity (Bennelong Fund). This information has been prepared without taking account of your objectives, financial situation or needs. Before acting on the information or deciding whether to acquire or hold a product, you should consider the appropriateness of the information based on your own objectives, financial situation or needs or consult a professional adviser. You should also consider the relevant Information Memorandum (IM) and or Product Disclosure Statement (PDS) which is available on the BFML website, bennelongfunds.com, or by phoning 1800 895 388 (AU) or 0800 442 304 (NZ). Information about the Target Market Determinations (TMDs) for the Bennelong Funds is available on the BFML website. BFML may receive management and or performance fees from the Bennelong Funds, details of which are also set out in the current IM and or PDS. BFML and the Bennelong Funds, their affiliates and associates accept no liability for any inaccurate, incomplete or omitted information of any kind or any losses caused by using this information. All investments carry risks. There can be no assurance that any Bennelong Fund will achieve its targeted rate of return and no guarantee against loss resulting from an investment in any Bennelong Fund. Past fund performance is not indicative of future performance. Information is current as at the date of this article. 4D Infrastructure Pty Ltd (ABN 26 604 979 259) is a Corporate Authorised Representative of BFML.

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Sarah Shaw
Global Portfolio Manager and Chief Investment Officer
4D Infrastructure

Sarah has almost 30 years of experience across financial services, including 20 years focused on global listed infrastructure. She is an experienced portfolio manager, having successfully launched and managed several listed infrastructure funds...

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