Due to the essential nature of infrastructure assets, demand is relatively stable and may provide lower volatility than traditional equities. Even during periods of economic weakness, consumers continue to rely on services such as water, electricity, gas and transportation.
Megatrends run on infrastructure
Own the assets that power them
The world is entering a new infrastructure investment cycle
From AI and data centres to cleaner energy, surging electricity demand, climate adaptation and the modernisation of critical networks, powerful megatrends are reshaping the global economy. But every megatrend needs physical infrastructure to become reality.
These forces are driving unprecedented investment in essential infrastructure - creating opportunities in the businesses and assets that enable growth and keep economies moving.
Discover the megatrends powering the next decade.
Explore the megatrends
Electrification & decarbonisation
Electricity demand is rising as electrification, industrial reshoring and new sources of power-intensive demand place greater pressure on electricity networks.
Meeting this demand while transitioning to cleaner energy will require substantial investment in generation, transmission, distribution, storage and grid modernisation creating long-term opportunities across the infrastructure that powers the economy.
AI & digital infrastructure
The rapid growth of AI, cloud computing and digital services is increasing demand for the physical infrastructure behind the digital economy, while data sovereignty requirements are reinforcing the need for secure, locally based capacity.
From power, cooling and connectivity, significant investment will be required to support the next phase of digital growth.
Energy security
Geopolitical uncertainty, climate risk and changing patterns of global energy supply are putting greater emphasis on the security and resilience of essential energy networks.
Investment is increasingly focused on strengthening and diversifying energy supply, improving network resilience and ensuring reliable access to energy, creating opportunities in the infrastructure that economies depend on to withstand disruption.
Why invest in these megatrends through infrastructure?
Within a portfolio, the infrastructure assets offer investors the potential for:
Lower Volatility
Stable Cash Flow
Infrastructure companies can provide predictable income distributions due to stable earnings derived from the underlying asset. Regulation and/or long-term contracts provide stable cash flow and greater capital stability, which may provide visibility for revenues and dividends.
Inflation Protection
Many infrastructure assets have an explicit link to inflation through regulation, concession agreements or contractual arrangements. This can help preserve the value of cash flows and provide a degree of inflation protection for investors.
Diversification
Infrastructure can be an effective portfolio diversifier due to its lower correlation with traditional asset classes such as equities and bonds. Returns are often driven by regulatory and contractual frameworks, which may help provide resilience during periods of market stress.
Liquidity
Investing through global listed markets provides the flexibility to respond to changing market conditions. It also enables active managers to access opportunities efficiently and allocate capital where they see the greatest potential for investors.
Access these megatrends through the ClearBridge Infrastructure Active ETF range
ClearBridge's global infrastructure strategies are available to Australian investors through a range of Active ETFs listed on the ASX. Each ETF provides access to a globally diversified portfolio of essential infrastructure managed by an investment team. For income-focused investors, it may also offer a diversified source of income alongside Australian equities, fixed income and term deposits.
As actively managed ETFs, they can invest in high-quality infrastructure businesses positioned to benefit from the megatrends above, rather than simply tracking an index. Listed on the ASX and priced daily, they combine the benefits of infrastructure investing with the liquidity, transparency and convenience of an ETF.
CUIV
ClearBridge Global Infrastructure Value Fund Active ETF
A global infrastructure strategy providing exposure to essential assets and businesses positioned to benefit from long-term growth, inflation-linked revenues and stable cash flow.
CIVH
ClearBridge Global Infrastructure Value Fund (Hedged) Active ETF
A currency-hedged global infrastructure strategy providing exposure to essential assets and businesses positioned to benefit from long-term growth, inflation-linked revenues and stable cash flows.
CIIH
ClearBridge Global Infrastructure Income Fund (Hedged) Active ETF
An income-focused global infrastructure strategy designed to provide regular income and capital growth from essential infrastructure assets around the world.
R3AL
ClearBridge Real Income Fund Active ETF
A real income strategy focused on quality real assets and infrastructure businesses, seeking attractive income, inflation protection and resilience through market cycles.
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Looking to add defensive income, inflation-linked growth, or targeted exposure to the megatrends reshaping the global economy? Speak with your Franklin Templeton representative today.