3i Infrastructure is still a smarter investment than cash or bonds
By Chris Bailey | Friday 29 September 2023
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I am trying to remember if I have ever owned shares in a water company. Maybe when I historically took over an institutional fund, there was an allocation which I (quickly) sold and replaced with something more interesting. Therefore, when I read the news that Severn Trent (SVT) has announced a £1 billion money raising this morning, I wish any investors good luck but I am not going to be involved (even if the Qatar Investment Authority is committed to a £500 million further investment). I think we can all guess how the total return profile of equity investors in this sector may well perform over the next decade. And you also have to be careful about the infrastructure sector too.
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