Jacqueline Broers, deputy fund manager at Utilico Emerging Markets Investment Trust (UEM), explains to investors why investments in road, rail, port, and airport companies across the emerging markets can deliver the fund healthy returns over long term.
Jacqueline points out that infrastructure investments are often underpinned by long term contracts, making them predictably profitable over the longer term and which deliver the fund healthy returns over the long term.
Furthermore, as the middle classes grow in Emerging Market countries, so demand for infrastructure grows and investment deepens.
Utilico is therefore a fan of tangible infrastructure development – roads, railways, airports and ports, as these underpin GDP growth in Emerging Markets.
Utilico has identified four Emerging Market megatrends which will underpin growth in the coming years:
1) Global trade - where the dynamics are constantly evolving
2) Digitalisation - greater use of technology
3) Social infrastructure growth
4) Energy transition to renewables
Jacqueline Broer, Deputy Portfolio Manager at UEM puts all this into context as she speaks to focusIR.