The Property and Infrastructure Fund was down -1.5% for the month. US railroads Union Pacific (-10%) and Norfolk Southern (-6%) underperformed as weekly volume growth decelerated, particularly in the automotive and intermodal (container shipping) categories. The slowdown is due to greater impacts from supply chain congestion which will be resolved with time. The pricing environment is becoming favourable, with increasing truck rates starting to filter through to railroad customers. We added to our positions.

Our largest position Infratil (+6%) announced the launch of Gurin Energy, its fourth renewable energy platform and first in Asia, based on a team of people with a track record of success in South East Asia. This again demonstrates Infratil’s ability to grow and create value beyond the assets in its existing portfolio.