Commentary - September 2026Global Infrastructure Fund
Portfolio Manager Eric Bright highlights key trends shaping digital infrastructure, recent changes to the Fund’s portfolio, and opportunities in global infrastructure.
What are the key trends shaping digital infrastructure in 2026?
We have seen a divergence in performance across digital infrastructure. Performance of data center real estate investment trusts (REITs) has been strong, supported by strong demand and visible earnings growth. For example, Equinix and Digital Realty Trust have increased 34% and 16% year-to-date through September. Tower companies, however, have faced several headwinds, including higher interest rates, concerns about potential competition from satellite technology, and uncertainty surrounding telecommunications consolidation in Europe.
At the same time, local opposition, permitting delays, and affordability concerns have slowed certain data center and power projects. While these challenges may affect the timing and location of development, we believe the long-term demand for data capacity, power generation, and transmission infrastructure remains intact. In many cases, projects may be delayed or relocated rather than canceled altogether.
We continue to evaluate opportunities within digital infrastructure carefully, favoring companies with established demand, durable cash flows, and attractive long-term growth prospects rather than businesses dependent on speculative AI-related development.
What portfolio changes took place in 2Q and where are you finding opportunities?
Market volatility has created opportunities to invest in high-quality infrastructure businesses at what we believe are attractive long-term valuations. During the quarter, we added Waste Connections and Ferrovial, expanding the Fund’s exposure to essential services and transportation infrastructure.
Waste Connections provides essential waste collection, disposal, and recycling services across North America. We are attracted to the recurring nature of demand, the company’s established operating history, and its historical ability to generate consistent cash flows. The business also benefits from significant barriers to entry, particularly in markets where landfill capacity is limited.
Ferrovial provides exposure to transportation infrastructure, including toll roads and airport assets, with a significant presence in North America. We believe the company’s portfolio of infrastructure assets and pipeline of major projects provide attractive opportunities for long-term growth.
We also exited our position in Primary Health Properties, reflecting our ongoing efforts to allocate capital toward businesses with stronger growth prospects and more attractive risk-reward characteristics. Overall, the portfolio changes reflect our disciplined approach to identifying companies with essential assets, resilient business models, and the potential to compound earnings over time.
What is your outlook for global infrastructure?
We remain constructive on the outlook for global infrastructure, supported by several long-term investment trends. Rising electricity demand, grid modernization, energy security, and continued digitalization are driving significant capital investment across global markets. Governments are also increasingly seeking private capital to help finance essential infrastructure projects, creating opportunities for experienced operators and investors.
We see opportunities across a broad range of sectors, including utilities, power generation, transportation, digital infrastructure, and essential services. Many of these businesses benefit from high barriers to entry, long-lived assets, and regulated or contracted revenues that provide greater visibility into future cash flows.
While interest rates, permitting challenges, and geopolitical uncertainty may continue to influence market sentiment, we believe the underlying investment outlook remains favorable. We remain selective, focusing on companies with strong fundamentals and visible growth opportunities that have the potential to deliver attractive long-term returns.
