Revival In Progress

Infrastructure investing:

Revival In Progress

America's infrastructure needs an upgrade—and hopes are high Trump will help lead the way. See what our managers believe new spending could mean for investors, and how active strategies can help.



“It's very important to get the private sector involved. You have to do that in a sensible way, in a way that ends up financing projects that make sense, that make economic sense as well as provide a public good.”

    -Derek Deutsch, Managing Director, Portfolio Manager, ClearBridge Investments

“Essentially what a Public-Private Partnership (P3) does is it solves two issues. One is economic, and one is political. It shifts the risk or transfers the economic risk of an infrastructure project from the public to the private sector for a set period of time.”

    -Robert Amodeo, Head of Municipals, Western Asset

“I think you'll find the infrastructure projects that he's [Trump’s] going to focus on are the big ones that the public wants to see happen. The public want to see better airports. They want to see better transportation.”

    -Richard Elmslie, Co-CEO & C0-CIO, RARE Infrastructure

“All the stars are beginning to align from the social, the investment and the government level. That's what's different today.”

    -Derek Deutsch, ClearBridge

“This is the first time where maybe, maybe, you're actually going to be successful. You're going to cut the red tape, and you're actually going to do some projects which will allow for private participation which will allow for there to be winners in the consumer, the government, in private sector debt and equity, and operators. That's a fantastic opportunity. This is an enormous country in need of repair, so it's a great opportunity.”

    -Richard Elmslie, RARE Infrastructure

“The way we're approaching infrastructure in the US is changing. In the past, we would have a draft of the bridge or tunnel, whatever, send those plans out to a construction company and low bid would win. Now, we're looking at it over the full life cycle, and all of the risks that are included in that infrastructure project.”

    -Robert Amodeo, Western Asset

“Infrastructure for me has to be a real asset, it has to be a tangible asset. It has to be made available to the public. For us, the availability, the revenue stream has to be underpinned by a contract or a regulatory framework so I have some certainties in the cashflow.”

    -Richard Elmslie, RARE Infrastructure

“I would simply just say, we're involved in the full risk spectrum,  the design, build, finance, operate, maintain spectrum. We have strong relationships with all types of people, the construction companies, engineering firms, developers, investment bankers.”

    -Robert Amodeo, Western Asset

“We think about renewable energy for instance, there's a lot of policies that have been in place, that have been beneficial to things like wind, and solar, and other clean energy types of projects and companies. Now, we're in a much more uncertain environment. What's the new world going to look like?”

    -Derek Deutsch, ClearBridge

“The honest truth is, Trump might want fossil fuel, but at the end of the day the economics are that gas will displace coal, coal is on a secular decline around the world, including America.”

    -Richard Elmslie, RARE Infrastructure

“From the perspective of infrastructure, we are pretty enthusiastic about certain sectors, within the technology sectors. I mentioned cloud computing earlier. That's an area that's really exploding… Cyber security, which is a priority for the administration as it should be, a little ironic perhaps given what happened during the election, but that's the market that's growing rapidly…Wind is an area with a tremendous amount of momentum right now…. LED lighting is another one.”

    -Derek Deutsch, ClearBridge

“Being explicit on how these things are funded and accepting that that's the way we're going to have to be on the future if we want to have reasonable infrastructure and movement of goods and people in our society. I think there has to be an acceptance of somehow we have to pay for this.”

    -Richard Elmslie, RARE Infrastructure

 

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