Building Resilient Portfolios: Infrastructure Investing with Standard Life and BlackRock

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In an increasingly interconnected and rapidly evolving global economy, infrastructure stands as the backbone of sustainable growth and societal progress. From energy grids and transportation networks to digital communications and water systems, infrastructure assets are essential to everyday life. As governments and private entities ramp up spending to modernize aging assets and meet climate goals, the listed infrastructure space is emerging as a dynamic and resilient sector. 

We’re delighted to announce the launch of the Standard Life BlackRock Global Listed Infrastructure Fund. This marks the beginning of a new partnership with BlackRock as well as the addition of a new asset class to Standard Life’s investment choices.

Global listed infrastructure investing offers a compelling opportunity for investors seeking long-term, stable returns with inflation protection and diversification benefits.

As an Article 8 under SFDR, the fund aims to invest at least 70% of assets in infrastructure companies from around the world that facilitate, enable and lead the transition to a lower carbon economy.

The future runs on infrastructure

The world is changing fast - and it needs better infrastructure to keep up. From roads and power plants to data centres and ports, trillions of dollars will be invested globally between now and 2040* to build the systems that support modern life.

While private companies will fund much of this, many of the key players are publicly listed - meaning everyday investors can get involved too.

Here’s what’s driving the demand:

• The Digital Boom: AI, streaming, and data growth are fuelling the need for more digital infrastructure
   
• Energy Evolution: Rising electricity use and the push for energy security are creating new opportunities in power and renewables
   
• Global Shifts: Changing geopolitics are reshaping supply chains, increasing demand for transport and logistics infrastructure
   
• Population Trends: Growing populations in developing countries and aging ones in developed markets both require major infrastructure upgrades

*Source: BlackRock, April 2025

What’s the attractiveness of listed infrastructure companies?

Essential services and steady demand

Infrastructure companies, like utilities, energy pipelines, transportation and telecommunications typically provide services that remain in demand regardless of economic cycles, which can lead to more stable revenues.

Potential for steady income

Many of the fund’s holdings generate consistent stable cash flows from long-term, often inflation-linked contracts and/or regulated pricing. For example:

1. Transurban Group – toll roads with multi-decade concessions to operate and collect tolls.
2. Crown Castle – telecom towers leased towers to mobile operators under multi-year contracts.
3. TC Energy – pipeline infrastructure with long-term transport agreements.
4. Union Pacific – freight rail with regulated pricing.
5. NextEra Energy – long-term purchase power agreements to deliver renewable electricity via the public grid.

Infrastructure equities have historically delivered higher income than broader global equities.