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Alternative Market Briefing

Renewable energy and Telecom are the most pandemic-resilient infrastructure sub-sectors

Tuesday, September 29, 2020

Laxman Pai, Opalesque Asia:

While infrastructure as a possession course has actually shown to be highly pandemic durable, there are significant distinctions in the performance of various industries, according to a new white paper from investment firm Foresight Group.

The new study into the resilience of infrastructure to global pandemics reveals that renewable energy, telecoms and primary care have proved to be the most pandemic resilient.

Foresight's white paper "Infrastructure Pandemic Resilience: a true test of infrastructure's defensive characteristics" considers the resilience of infrastructure to global pandemics through five investment fundamentals: revenues; costs; financials; political and regulatory environments; and operations.

Nigel Aitchison, Partner and Head of Infrastructure at Foresight, said: "Infrastructure as an asset class has long been sold on its robust defensive and uncorrelated characteristics. The Covid-19 global pandemic has been the biggest test of its resilience yet."

Foresight's research drills down into the infrastructure sector and reveals substantial differences in the performance of 23 sub-sectors. Diversification across a range of these sub-sectors will be key to limiting the adverse impact of future pandemic threats," Nigel added.

Improved business continuity planning (BCP) is a key area for future action within infrastructure, highlighting the need for active investors to focus portfolio companies on developing mor......................

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