InvestmentMarkets Launches Podcast Series with Magellan’s David Costello as Inaugural Guest
In the debut episode of Investment Matters, a new podcast from leading investment comparison site InvestmentMarkets, David Costello, Portfolio Manager at Magellan Asset Management, explains why global listed infrastructure is not only a defensive asset class but one increasingly poised for structural growth.
Speaking with InvestmentMarkets CEO Darren Connolly, Costello outlines how infrastructure assets, long considered the preserve of conservative, yield-focused investors are being redefined by forces such as electrification, decarbonisation, AI, and data growth. He argues that these assets, often dismissed as “bond proxies,” are in fact central to many of the world’s most important investment themes today.
Costello explains that infrastructure companies, tend to offer durable cash flows, high barriers to entry, and strong regulatory protections. But what’s catching the attention of long-term investors is the rate of transformation now underway in the sector. From the surge in electricity demand driven by data centres to the changing regulatory frameworks encouraging investment in network upgrades, listed infrastructure is capturing powerful tailwinds.
He points to Magellan’s own investments in UK water utilities, such as Severn Trent and United Utilities, as an example of market dislocation creating compelling value. While other unlisted peers like Thames Water were under pressure, Magellan identified an opportunity in their listed counterparts, where fundamentals remained strong but valuations had fallen to unusually low levels. That thesis is already being vindicated in 2025, with these assets delivering strong returns.
The conversation also covers the ongoing debate between listed and unlisted infrastructure, with Costello cautioning that the perceived stability of private assets may be more illusion than advantage. He notes that while private infrastructure valuations are infrequently updated and often model-based, listed markets provide real-time pricing and, in many cases, significantly better value.
Importantly, Costello highlights how infrastructure assets behave during periods of market stress. He shares that Magellan’s own drawdown analysis shows global listed infrastructure consistently outperforms broader equities during economic downturns, offering a buffer against volatility. And while rising interest rates have historically posed headwinds, Costello believes that today’s higher base rates mean future increases are unlikely to undermine the asset class in the same way.
Costello emphasises the importance of having patience when investing, coupled with ongoing scrutiny and self-reflection, especially in markets that are anything but predictable. Infrastructure is one of the few asset classes that offers true diversification, resilience, and now, genuine growth. At a time of heightened uncertainty, that combination is hard to ignore.
The full conversation will be available on Investment Matters on Tuesday 1st July, streaming via all major platforms and at investmentmarkets.com.au/podcasts.