Infrastructure market outlook 2024

Pekka Niemelä, Fund Manager

Among the infrastructure sectors, water, gas and electricity companies, which are the least cyclical and offer good dividend yields, can be expected to perform best.

Pekka Niemelä, Fund Manager

The global economy proved stronger than expected in 2023, despite major geopolitical uncertainties around the world. The turnaround in inflation expectations at the end of the year led to a rapid decline in long-term interest rates and a strong rise in the equity markets. The prices of low-cyclical and high-dividend infrastructure equities also rose towards the end of the year and full-year returns for UB Infra Fund (UCITS) approached their long-term average.


In the infrastructure sector, the best performers were companies specialised in oil and gas distribution, and airport services companies, which had recovered from the effects of the pandemic. By contrast, traditional utilities, such as electricity, gas and water companies, were the worst performers. They typically have the highest dividend yields, so the high level of interest rates in 2023 weakened their relative position as investments.


In emerging markets, returns were modest, largely due to China’s much weaker-than-expected economic performance. The UB Emerging Markets Infra Fund only barely climbed into positive territory thanks to a year-end rebound. 

Infrastructure companies’ strong and stable stream of dividends is a key factor in their value formation, so large interest rate movements play a role in their valuation in the equity market. Last year’s reversal of the interest rate cycle will be a very positive factor for these companies this year, even if the economic cycle starts to show signs of weakening.


Among the infrastructure sectors, water, gas and electricity companies, which are the least cyclical and offer good dividend yields, can be expected to perform best. Travel and transport logistics companies are not expected to match this development.


United Bankers' infrastructure funds:


UB Emerging Markets Infra Fund »

An Equity Fund that offers the opportunity to invest in emerging market infrastructure companies with strong growth potential.

UB Infra Fund »

Infrastructure investments have the advantage of a good potential for profit and stable development.

Would you like to know more about our funds or have a suggestion from our experts about the most suitable options for you?

Contact us, our experts are at your service »


The information presented is based on UB’s own estimates and sources considered reliable by UB. The information on which the conclusions are based may change quickly and UB Group may revise its market view without prior notice. No information obtained through this presentation should be construed as a solicitation to invest. When making investment decisions, readers should base their decisions on their own assessment of the investment and the risks involved, and to consider their personal goals and financial situation.


Investing in funds always involves financial risk. The value of an investment in a fund may go up or down and you may lose some or all of the capital invested. The past performance of a fund is not a guarantee of future performance and cannot be used to predict future returns. The target return set for a fund may not be achieved. The risks are set out in more detail in each fund’s key information document and in the fund prospectus. Before making an investment decision, investors should consult the fund’s key investor information document, fund prospectus, rules and price list, which are available on each fund’s website. The funds are managed by UB Fund Management Company Ltd. The portfolio management of the funds has been outsourced to UB Asset Management Ltd.