2 infrastructure shares this top fund manager is backing

One of the top-performing investment returns focused on ASX large caps has been delivered by WAM Leaders Ltd (ASX: WLE).

Over the past year its portfolio has delivered a return of 17.2% before expenses and fees.

WAM Leaders lead portfolio manager Matthew Haupt recently spoke to Livewire to say where he thinks is an opportunity at the moment considering all the political and financial uncertainty going on at the moment.

Regardless of whether Labor or the Liberals win the next election, infrastructure is likely to benefit. Federal and State governments are promising to spend big to keep our capital cities moving.

This is good in the long-term because it improves the city and makes it a better place to live. In the short-term it’s good for employment, for GDP and the companies contracted to do the construction.

One of his ideas is Cimic Group Ltd (ASX: CIM), the share price has risen around 80% over the past two years. However, Mr Haupt thinks there’s still an opportunity surrounding the structure.

It is heading towards becoming a vertically integrated company like Transurban Group (ASX: TCL) where it constructs a project and then is in charge of managing too.

Another business that Mr Haupt mentioned is Lendlease Group (ASX: LLC). Its local arm in Australia is small but it could grow and become a significant, profitable part of the overall group.

As a bonus, he also suggested that suppliers to the construction industry like Boral Limited (ASX: BLD) and Adelaide Brighton Ltd (ASX: ABC) could be ones to look at.

Foolish takeaway

I agree with Mr Haupt. I like to find businesses that can keep growing regardless of economic dips or not. Infrastructure seems to be one of those sectors, but I’m personally unsure how big the opportunity is and the risks. It’s outside of my circle of competence, so I’m personally happy to leave the opportunity to other people.

Instead, if I’m going for businesses that can keep growing no matter what, then I’d rather go for more of this top share which is already in my portfolio.  

The best dividend stock to buy in October

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!