×
×
×
×
×

Tell us once and we'll remember.

I'm an...

Don't worry, you can always change this selection using the icons at the top left of the site.
  
data?.title

Utility Cash Flows Offer Predictability Amid Economic Slowdown

December 31, 2022

 

Portfolio Manager Daniel Chu discusses how traffic on developed toll roads, commuter rail and airports continues to recover from the pandemic; how peaking global bond yields and higher energy prices are weighing on utility performance, although the energy transition is driving the best growth prospects in decades; how valuations in renewables remain compelling, although longer-duration assets remain sensitive to rising yields; and how dividend transparency remains high in utilities and improving in transport infrastructure.

Related Perspectives

AI, Reshoring Drive Power Demand
Global Infrastructure Value 3Q25: Reshoring and AI-focused data centers are requiring significant buildout of energy infrastructure, in particular for U.S. electric and gas utilities.
Data Center Tailwinds Drive Steady Infrastructure Gains
Global Infrastructure Income 3Q25: U.S. utilities, renewables and North American natural gas and pipelines performed well, benefiting from elevated demand for power to support AI-focused data centers.
Infrastructure in the Rapidly Changing Policy Landscape
Accelerating policy-driven investment and AI-driven data center growth are unlocking a multi-decade growth opportunity for listed utilities globally.
Resilience with Upside in a Volatile Quarter
Global Infrastructure Income 2Q25: Listed infrastructure was resilient during the market volatility in April, strongly outperforming the broader market, and remained steady through May and June while equities recovered from the selloff.
Infrastructure Shines Amid Uncertainty, Remains Attractive
Positioned defensively amid U.S. tariff uncertainty and market volatility, infrastructure has room to run given still-attractive valuations.
More
  • Past performance is no guarantee of future results. Copyright © 2022 ClearBridge Investments. All opinions and data included in this commentary are as of the publication date and are subject to change. The opinions and views expressed herein are of the author and may differ from other portfolio managers or the firm as a whole, and are not intended to be a forecast of future events, a guarantee of future results or investment advice. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Neither ClearBridge Investments, LLC  nor its information providers are responsible for any damages or losses arising from any use of this information.

  • Performance source: Internal. Benchmark source: Morgan Stanley Capital International. Neither ClearBridge Investments, LLC nor its information providers are responsible for any damages or losses arising from any use of this information. Performance is preliminary and subject to change. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Further distribution is prohibited. 
  • Performance source: Internal. Benchmark source: Standard & Poor's.

more