Picture your Future. Save for it by earning 1.5% on a 1-year Term Deposit Account! Learn more.

The benefits of investing in a portfolio of infrastructure companies explained during medirectalk

 

It is estimated that as the world will be approaching the 10 billion population mark in 30 years’ time, there will be over USD50 trillion worth of new infrastructure assets globally in the next decade, with a significant portion of such assets being driven by private investments.

This information was delivered during a well-attended MeDirect webinar, held recently together with leading global fund house Franklin Templeton Investments, on the topic of investing in a portfolio of infrastructure companies, as a means to provide sustainable income and drive global sustainable growth.

This was the second medirectalk of its kind to be held online, given the current situation and the necessary social distancing requirements. medirectalk is a series of seminars organised by MeDirect Bank, featuring several financial experts and asset managers sharing their views on market and investment opportunities.

The webinar started with an overview by David Chambers, Business Development Director of Franklin Templeton Investments, followed by Ajay Dayal, who delivered a keynote speech on the topic of infrastructure as a means of investment.

Dayal is the Managing Director and Head of International Equity, Product Specialist Group, Legg Mason – a division of Franklin Templeton.

He said infrastructure is deemed to be the critical life blood of the world and is a mega-trend that will shape our children’s lives over decades. More infrastructure spending is being committed to by the big nations, as they continue to develop. Clearly, such infrastructure projects require funding, he said.

“From the moment we wake up, to taking a shower, to having breakfast, to traveling to work, to sending your kids on the school bus or train, to working in the office or factory, and to the time we come home and eat dinner with our family or loved ones, we are using infrastructure facilities. Water, electricity, gas, roads, railroads, communications, are all used by many of us every single day.  We rely on infrastructure,” Dayal said.

It is estimated that USD20 trillion will be spent in the investment of electricity supply, as well as another USD8.4 trillion in regulated and contracted generation from gas, solar and wind sources – between the period 2018 and 2040. In addition, USD8.6 trillion are expected to be spent on networks and energy storage.

Dayal added that as the world gets richer and people get wealthier, they want to have better quality infrastructure. All countries want better, faster and cleaner railways to transport people, or offer more toll roads to provide drivers better choices in congested cities, as well as more or better airports to facilitate business and leisure travel demands. Countries are also demanding cleaner forms of energy as they become more aware of the climate impact of fossil fuels, he said.

“This infrastructure not only makes people’s lives better, but it also means that economies that have better transport infrastructure and utilities often have better, stronger and faster growing economies.  Simply put, good and better infrastructure is the foundation of any growing economy,” Dayal said.

He covered the benefits of infrastructure and how investors can access infrastructure assets. Dayal explained why a smart portfolio of infrastructure stocks can provide an investor with a stable, sustainable and attractive income, as well as capital growth.

Dayal delved also into Environment, Social and Governance (ESG) aspects to investing, stating that the stakeholders need to understand how government policy makers and investors think in terms of making future investments.

At the end of the webinar, an overview of the Legg Mason ClearBridge Infrastructure Value Fund was given. The Legg Mason ClearBridge Infrastructure Value Fund gives investors an attractive balance of capital growth and good income over a long period of time, with the ability to buy and sell into the Fund easily on a daily basis as per the regulations.  Today the fund is close to USD800 million of client money from all over the world.

The ClearBridge Infrastructure investment team, one of the largest in the world, consists of 13 dedicated infrastructure specialists, with complementary skill sets and significant experience in this particular asset class.

For more information on the fund contact MeDirect on 2557 4400 or on info@medirect.com.mt.

In order to view this medirectalk, as well as to view past events visit: https://www.medirect.com.mt/invest/medirectalk


The information given during this seminar is being provided by Franklin Templeton. The information contained in this talk is for general information purposes only and is neither intended to provide legal or other professional advice nor does it commit MeDirect Bank (Malta) plc to any obligation whatsoever. The information available during the seminar is not intended to be a suggestion, recommendation or solicitation to buy, hold or sell, any securities and is not guaranteed as to accuracy or completeness. The financial instruments discussed may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.

The financial instruments discussed in this seminar may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.

If you invest in any of the products discussed you may lose some or all of the money you invest. The value of your investment may go down as well as up. A commission or sales fee may be charged at the time of the initial purchase for an investment and may be deducted from the invested amount therefore lowering the size of your investment. Any income you get from this investment may go down as well as up. This product may be affected by changes in currency exchange rate movements thereby affecting your investment return therefrom. The performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance. Any decision to invest in a mutual fund should always be based upon the details contained in the Prospectus and Key Investor Information Document (KIID), which may be obtained from MeDirect Bank (Malta) plc.

Share on facebook
Share on linkedin

Experience better banking

The sooner you start managing your money, your way, using the best-in-class tools, the sooner you’ll see results. Sign up and open your account for free, within minutes.

Latest news articles

All News

BlackRock Commentary: Why we still prefer stocks over bonds

Equities have fallen hard this year on the prospect of rapid rate increases to rein in inflation, the tragic Ukraine war and a slowdown in China. BlackRock think equities remain more attractive than bonds, even as the historic sell-off in bonds has cut the gap between the two.

All News

Notes from the Trading Desk – Franklin Templeton

Given recent declines, there is much discussion around what is priced into market. With global markets declining for six consecutive weeks, there is an increasing debate over how much bad news is priced in, and whether markets are now oversold.

Login

We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.