In March Listed Infrastructure was influenced by the negative development of the global equity markets. However, the Fund has shown a more stable performance. Equity markets dropped worldwide due to the tense trade relations between the US and China, which especially led to a negative month for export-oriented Chinese port operators within the portfolio. Meanwhile the Chinese natural gas distributor ENN Energy was the best performing stock in the portfolio. The shares benefited from the publication of the company’s 2017 annual results with an increased net profit of 30% compared to last year. On the other hand, Beijing Enterprises Water, an operator of water and environmental protection services, published disappointing results, following the Chinese government’s announcement to introduce more scrutiny on public private partnerships. furthermore, US pipeline operators declined after the publication of the Federal Energy Regulatory Commission to increase restrictions, which are expected to have a negative impact on pipeline tariffs.
Finally, Italian infrastructure operators managed to recover in March after having recorded a negative performance last month as a result of the uncertainty regarding the outcome of the Italian parliamentary elections. Italgas for instance shared favorable annual figures, due to a more stringent cost control, which led to an EBITDA-increase of 14% compared to last year. In addition, the company announced a large investment program.