Ms Beltran outlines: “S&P is noticing that currently the entry price point for listed infrastructure looks more attractive than unlisted.
“Growing competition for unlisted infrastructure assets has been putting increasing pressure on valuations, and listed assets are looking comparatively cheaper.”
William Argent, fund manager for Gravis Capital Management and adviser to the VT UK Infrastructure Income Fund, believes such stocks are less volatile, with more visibility around pricing and cash flows for listed infrastructure than other listed equities.
He states: “Listed infrastructure companies typically display lower volatility compared to listed equities.
“Visibility around future cash flows alongside regular net asset value (NAV) updates provide points of reference for investors and this tends to drive greater consistency in the valuation the market ascribes to infrastructure vehicles.”
By contrast, according to Mr Argent, equities are more susceptible to short-term changes in sentiment, and therefore valuations can fluctuate “routinely”.
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