Commentary - March 2026Foresight Global Infrastructure Fund
In the following commentary, Portfolio Manager Eric Bright discusses the strengthening infrastructure backdrop, driven by resilient fundamentals and increasing demand for power and essential assets.
The S&P Global Infrastructure Index rose 8.3% in the first quarter of 2026, outperforming the S&P 500 by over 1200 basis points. What drove infrastructure’s quarterly outperformance versus the overall U.S. market?
Infrastructure equities have recovered following the unusually rapid and aggressive rate hikes of 2022 and 2023, which placed significant pressure on valuations despite generally solid underlying performance. Since late 2024, a more stable global interest rate environment has emerged, with some regions easing ahead of the U.S., supporting improved sentiment.
We believe we are seeing a return to companies trading on fundamentals, with investors focused on underlying earnings growth, which have been strong in infrastructure. At the same time, improved liquidity in private markets and a greater willingness to take long-term investment views have supported demand and asset valuations. This backdrop is contributing to a more constructive environment for infrastructure assets going forward.
Market volatility has picked up in 2026 because of changing AI expectations. How has that trend affected infrastructure both in the U.S. and abroad?
We believe AI represents a meaningful tailwind for infrastructure, not as a speculative theme but as a driver of demand for essential assets. The development of AI requires significant investment in physical infrastructure, including data centers, power generation, and transmission networks. Infrastructure is the backbone supporting technological advancement.
Importantly, demand across digital and energy infrastructure extends beyond AI. Long-standing trends such as cloud computing, increased data consumption, and mobile usage continue to underpin growth. While AI may introduce broader economic disruption, the role of core infrastructure assets remains critical, supporting a resilient and durable outlook for the sector.
Can you discuss the state of energy infrastructure with growing power needs with AI?
The power sector is benefiting from a convergence of long-term structural drivers, making it an attractive area for investment. Demand is being supported not only by AI, which requires significant new power capacity, but also by broader electrification trends across the global economy. At the same time, ongoing grid modernization and the replacement of aging infrastructure continue to create sustained investment opportunities.
Growth is expected across three key areas:
- Power generation: Capacity is expanding to meet rising demand, with a mix of renewables, natural gas, and nuclear contributing to supply.
- Energy storage: Battery solutions are enabling excess generation to be stored and deployed during peak demand periods, increasing efficiency and grid reliability.
- Transmission and distribution: Investment in grid infrastructure is accelerating, supported by regulators and utilities, and underpinning a strong and durable growth outlook.
Would you summarize the recent Boralex acquisition and the relevance to the Fund?
In March 2026, Boralex Inc, a Canadian renewable energy company that develops, owns, and operates wind, solar, and hydroelectric power assets, agreed to be acquired by Brookfield Asset Management and La Caisse at a 36% premium to its 30-day average price prior to transaction news reports. The deal is expected to close in the fourth quarter of 2026 and allows the Fund to realize a significant gain in its investment.
Alongside recent takeovers such as Encavis and Innergex, this recent transaction underscores strong institutional demand for renewable platforms, despite weak public market sentiment, with valuations now beginning to recover.
