Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

2109

Obama plan “reinforces SWIP’s conviction in infrastructure investments”

RELATED TOPICS​

Scottish Widows Investment Partnership says its recent analysis of the US market and president-elect Barack Obama’s economic stimulus plan has reinforced its conviction in US infrastruc

Scottish Widows Investment Partnership says its recent analysis of the US market and president-elect Barack Obama’s economic stimulus plan has reinforced its conviction in US infrastructure.

SWIP has been researching the sector over a number of months and believes that Obama’s proposed economic stimulus package will kick start much needed investment in infrastructure.

SWIP is looking at companies that will benefit from developments in US infrastructure over the long-term.

Nick Ford, fund manager, US equities, says: ‘We welcome Obama’s plan for investment in US infrastructure. However, the state of the economy will slow infrastructure spend in the near term, regardless of the fiscal stimulus Congress may supply. Although, the investment tap will not be turned off because the US needs to invest in capital equipment in order to ensure the economy recovers over the long-term.

‘This in turn will provide opportunities for US companies providing materials and services for power, highways, bridges and water supply, all of which will need upgrading over the coming years.’

According to SWIP’s analysis, regardless of politics, US infrastructure is starting to creak. There is a lot of ageing equipment that was built in the 1940s and 1950s which requires much needed investment.

Simon Moss, fund manager, US equities, adds: ‘We are looking at companies such as Quanta Services which manufactures products for the transmission of electricity. The US equivalent of the national grid is looking to outsource a lot of its work when upgrading the system. Companies such as Quanta will benefit from long-term investment in one of the world’s largest electricity supply lines.’

On the flip side of this SWIP is much more cautious on consumer stocks as its analysis concludes that capital spending will provide the largest stimulus for the US economy not consumer spending.

Latest News

The trading and investment platform eToro has extended its proxy voting feature to all stocks..
C8 Technologies, the London-based fintech founded by former BlueCrest Capital Management partners Mattias Eriksson and..
DWS has announced the latest development in its strategic growth push in Alternative Credit with..

Related Articles

The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a possible buyout of EY’s Italian consulting branch...
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a..
Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by