162. I lay awake at night wondering what airport travel looks like in the future

M&G Global Listed Infrastructure fund manager Alex Araujo explains how he invests in businesses taking advantage of rising energy prices and why there is a big opportunity in the utilities’ sector at the moment. He also details the impact of Covid on the sector, including the paradigm shift towards digital infrastructure.Alex also talks us through the ongoing recovery in transport infrastructure but warns us that he still has some nagging concerns over the long-term success of airports. He also explains how he takes advantage of the rapid growth of e-commerce and why blockchain, crypto and healthcare are all likely to become part of the ‘evolving’ infrastructure trend.
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Managed by Alex Araujo, the M&G Global Listed Infrastructure fund looks for a balance of growth and income from three key areas of the sector: economic, social and ‘evolving’ infrastructure. This covers traditional areas like toll roads and utilities to more modern infrastructure themes such as payment companies and data centres – differentiating the fund against its peers. The final portfolio will consist off between 40-50 holdings and aims to yield between 3-4 per cent.

What’s covered in this podcast:

  • Investing in infrastructure businesses taking advantage of rising energy prices [0:20]
  • The recovery trade in transportation holdings and his concerns about what the airport industry looks like in the future [4:05]
  • How Covid has caused a paradigm shift in flexible working and how it has seen digital infrastructure replace the need for transportation infrastructure [5:18]
  • Tapping into transactional infrastructure through the Visa and Mastercard oligopoly [7:05]
  • Why the fund accesses data centres and railways infrastructure – rather than logistics and warehouses – as a way to tap into the growing e-commerce trend [8:50]
  • The rise of evolving infrastructure and why blockchain, crypto and healthcare will all soon become a major part of this trend of needing physical networks and data centers to operate [10:17]
  • Why the next generation of utilities’ companies offer the most exciting opportunities in the asset class [12:27]
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