ClearBridge Sees Infrastructure as the New Core for Portfolios

The macroeconomic landscape remains uncertain, marked by persistent inflation and shifting geopolitics, yet infrastructure assets are proving resilient. Hamieh, managing director at ClearBridge, notes that the firm’s strategies are currently delivering annualised returns of 10 per cent. By focusing on regulated entities like utility providers and mid-stream energy firms, the company avoids direct commodity price exposure, opting instead for assets that provide inflation-linked revenue streams.

Global spending on infrastructure is projected to reach $151.1 trillion by 2050, a forecast that has triggered a wave of consolidation among major asset managers including BlackRock and Amundi. While the sector faces potential hurdles—such as government-imposed restrictions on data center construction due to water and power consumption concerns—Hamieh maintains that the long-term structural demand remains intact. Current holdings in companies like Entergy, Engie, and Aena reflect a strategy centered on essential services that benefit from the ongoing global push for energy independence and industrial expansion.