Bridges and walls are the road to profit in the US recovery plan
David Brenchley, Sunday April 11 2021, 12.01am, The Sunday Times
While on the campaign trail to become president, Joe Biden pledged to “build bridges, not walls”. On April 1 he announced plans to build literal bridges, alongside other infrastructure projects, in a $2.25 trillion bill.
He has already met resistance but the bill should pass through Congress. Ben Loomes at the infrastructure company John Laing said it would “address years of under-investment in US infrastructure”…
Other countries, most significantly the UK, India, China and those in the EU, are also looking to rebuild their infrastructure and invest in green infrastructure…
Some funds invest in companies owning or providing infrastructure assets around the world. These have the benefit of offering the potential for capital growth through rising share prices…
Investors can achieve a higher yield, sometimes in excess of 6 per cent, by looking at investment trusts. These can also provide the opportunity for investors to invest in specific parts of the infrastructure chain.
They are popular, though. The share prices of trusts such as BBGI Global Infrastructure, International Public Partnerships and Greencoat Renewables all trade higher than the value of their underlying assets by almost 20 per cent.
James Carthew at QuotedData, the research provider, said Ecofin US Renewables Infrastructure and US Solar Fund might be the most obvious beneficiaries of Biden’s stimulus.
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