What is driving the infrastructure sector?

Peter Meany, manager of the First State Global Listed Infrastructure fund, reveals the positive drivers for the sector in the months ahead.

As liquidity has gradually returned to global markets, merger and acquisition activity has picked up pace in various sectors. Listed infrastructure has been no exception, thanks to ongoing low interest rates, improved corporate confidence and attractive valuations. Among those eager to snap up listed infrastructure assets, pension fund investors have been particularly prominent. As long-term investors, pension funds are understandably wary of the eroding effect of inflation on their portfolios. Infrastructure assets are increasingly sought due to their inflation-hedging characteristic...