The investment case for infrastructure has never been stronger, with significant investment in power grids required due to the boom in artificial intelligence (“AI”), the green energy transition and onshoring of manufacturing in many nations, according to Dr Kevin Hebner, global investment strategist with Epoch Investment Partners, Inc. (“TD Epoch”).
Dr Hebner says energy infrastructure companies will likely outperform in the medium term, after a strong performance in 2024, with US-listed utilities the second-best S&P 500 sector year-to-date as of 5 Aug 2024.
“We view the asset class as attractive because it has a relatively low correlation to equities, provides a hedge against inflation, and offers long-term, stable, risk-adjusted returns,” he said.
