The Property & Infrastructure Fund returned +1.2% in January, outperforming the benchmark return of +0.5%.

Kinder Morgan (+11%) reported fourth-quarter earnings which beat expectations and outlined its 2026 business plan. What was most welcome was strength in Kinder Morgan's natural gas business. The project backlog increased to US$10 billion, supported by multi-year structural tailwinds, in particular 60% of capital relates to power-linked projects and 20% to LNG (exporting U.S. gas to Europe and other regions). Kinder Morgan has done well in winning new deals in power, with power's share of backlog increasing from 50% last quarter. While Kinder Morgan had a solid result, we think the strong share price performance in the month was better explained by macro factors such as rising oil price on USA-Iran tensions. We reduced our position during the month to take advantage of the strong rally in Kinder Morgan shares.

Waste Connection’s (-4%) share price was weak in January, with little material company-specific news. One factor relevant to the company was a sharp drop in the price for recycled commodities which waste companies process (old corrugated cardboard was down -32% in December 2025 compared to the previous year). Whilst this business is a small contributor to Waste Connections earnings, the drop could impact Waste Connection’s forthcoming 2026 earnings guidance. Noting that market expectations for earnings are relatively intact, other factors are also driving soft investor sentiment. These include expectations for lowering inflation, which could imply lower price increases from waste companies. Investors are also selling defensive companies, like waste, and buying cyclical companies on expectations of an improving U.S. economy. Finally, there is some concern that Waste Connections may need to increase provisions for the recently closed Chiquita Canyon landfill. We are confident in Waste Connections earnings trajectory, including resilient pricing and consistent Chiquita Canyon landfill costs. Hence, we consider the share price weakness to be driven more by sentiment than fundamentals. We have been buying Waste Connections shares in recent months.