In collaboration with the Global Listed Infrastructure Organisation (GLIO), Wilshire Indexes engaged industry leaders to discuss key themes shaping infrastructure allocations in2025. Their insights reflect broad industry trends, including the valuation dynamics of listed infrastructure, the impact of rising power demand, and the role of earnings growth in supporting long-term asset performance.
Listed Infrastructure Valuations and Market Trends
Manoj Patel, Managing Director, Co-Head of Global Infrastructure Securities at DWS
"The current valuations of listed infrastructure are at a significant discount relative to private infrastructure. Smart infrastructure investors will look to capture this mispricing in 2025."
Market data suggests that listed infrastructure continues to trade at a discount compared to private infrastructure, a trend noted by several market participants. Infrastructure earnings have historically shown a strong relationship with total returns. However, changes in interest rates and market conditions have impacted asset valuations in recent years opening opportunities to build listed infrastructure exposure at attractive pricing. Investors and asset managers continue to monitor how infrastructure allocations evolve in response to these factors.
Infrastructure and Power Demand Trends
Jim Wright, Fund Manager at Premier Miton Investors
“We see the emerging growth in US electricity demand as the dominant theme for infrastructure allocations in 2025. This demand growth has implications for power producers (both fossil fuels and renewables), for utility-owned transmission and distribution grids, and for pipeline networks providing the feedstock for increased gas-fired generation. The pivot to growth after over a decade of flat demand presents a very different environment for listed infrastructure companies in the USA, and although it will bring challenges, we see it as providing huge opportunities to invest in new assets and to grow the utilisation and profitability of existing infrastructure. Overall we believe that this is an excellent set-up for the year, providing capital and income growth for listed infrastructure investors.”
Several industry leaders point to long term growth in electricity demand as a factor influencing infrastructure investment. This increase is being driven by:
- AI and Data Centers: Expanding power requirements from hyperscale data centers and cloud computing.
- Onshoring and Industrial Growth: Increased industrial activity and supply chain realignments contributing to power consumption.
- Energy Transition & Grid Modernization: Investments in utility-owned transmission, distribution, and pipeline networks supporting both traditional and renewable energy sources.
Market Perspectives on Infrastructure Earnings and Valuations
Nick Langley, Managing Director, Portfolio Manager at ClearBridge
“We believe we’re still seeing a catch-up of a gap between infrastructure earnings and total returns which has been in place since 2022, and valuations are attractive for this reason. Even though there is a strong positive correlation between infrastructure earnings growth and infrastructure total returns, increasing earnings and strong fundamentals have yet to fully offset the dislocation in valuations due to the rise in real bond yields in 2023. We expect this gap to close over time as the market recognizes the strong long-term themes of infrastructure.”
Wilshire Indexes and GLIO: Expanding Access to Infrastructure Data & Insights
Wilshire Indexes and GLIO are committed to enhancing transparency and accessibility within the listed infrastructure market. Through the FT Wilshire GLIO Listed Infrastructure Index Series, investors and market participants can access:
- Comprehensive Exposure: Tracking globally listed companies that own and operate essential infrastructure assets.
- Objective Classification: Utilizing EBITDA-driven methodologies and sector mapping for more precise benchmarking.
- Research & Data Insights: Providing performance tracking, risk assessment tools, and market reports for infrastructure investors.
The collaboration between Wilshire Indexes and GLIO reflects a broader industry effort to refine infrastructure benchmarks and offer more precise tools for market participants.
