KBank Private Banking Highlights 3 Investment Plans to Capture U.S. Infrastructure Trends
KBank Private Banking highlights three investment opportunities to capture growth from infrastructure development in response to the US’s economic recovery plan.
KBank Private Banking highlights three investment opportunities to capture growth from infrastructure development in response to the US’s economic recovery plan.
15 ก.ค. 2564

KBank Private Banking highlights K-GINFRA, K-HIT and K-CLIMATE as investment opportunities to capture growth from infrastructure development in response to the US’s economic recovery plan.
 
KBank Private Banking sees a positive trend from significant investment opportunities, after the announcement of the US President Joe Biden’s Infrastructure Plan, through K-GINFRA (K Global Infrastructure Equity Fund), K-HIT (K Global High Impact Thematic Equity Fund) and K-CLIMATE (K Climate Transition Fund).
One of the major drivers of the US post-pandemic economic recovery is President Joe Biden’s Infrastructure Plan. The agreed new spending package of USD 579 billion (approximately THB 19 trillion) covers a broad-based of infrastructure development, from bridges, roads, transportaion systems, airports, electric vehicles, water management and broadband internet network. The US Senate also passed the bill for the investment budget valued at USD 1.2 trillion (approximately THB 39 trillion) over eight years.
 
Mr. Jirawat Supornpaibul, Private Banking Group Head, KASIKORNBANK said, “As a result of the investment plan, certain businesses will emerge as winners. The significant investment capital for various major infrastructure projects will not only drive demands for cement and steels but also other types of services in the supply chain, from construction technology production, distribution and development companies, energy transmission businesses and communications solution providers. K-GINFRA, which invests in Morgan Stanley Investment Funds Global Infrastructure, Class Z (USD) and has over 40% investment in the US, will gain great benefits from this investment plan.
 
Top companies in K-GINFRA (K Global Infrastructure Equity Fund) include:
 
KBank Private Banking also recommends investment strategies in the mega trends through K-HIT (K Global High Impact Thematic Equity Fund). Currently, the theme of businesses expected to benefit from the US infrastructure investment has been positioned in the portfolio with approximately 15%. The fund also has flexibility in adjusting the investment position if more opportunities arise in the future.
Another investment strategy for today’s investor, K-HIT comes with the adaptability and is well-positioned to benefit from the global long-term trends due to its investment in the new economy theme and related businesses in the supply chain, which are likely to experience growth after Biden’s Plan. The largest investment in facilities for electric vehicles (EV), the plan aims to build a national network of 500,000 charging stations and will propel EV technology development. Also positioned to gain advantages is companies with expertise in sourcing materials or equipment for EV facilities e.g. software installation companies and EV part manufacturing businesses.
Examples of companies in the infrastructure investment theme in K-HIT include:
 
In addition to K-GINFRA and K-HIT, another fund that will benefit from the infrastructure plan is K-CLIMATE, which aims to invest in various funds worldwide and has a common goal of mitigating environmental issues and the impacts of climate change. Biden’s Infrastructure Plan also requires enormous amounts of construction materials, which must be low-carbon materials produced by companies that commit to minimizing carbon emissions embodied in their manufacturing processes and can obtain high-quality construction materials. The fund itself has a proportion of investment in relevant industries, such as building material manufacturers and utility sectors.
Examples of companies in K-CLIMATE Transition Fund include:
Since the beginning of 2021, K –GINFRA, K-HIT and K-CLIMATE has yielded returns +11.4%, +11.7%, and +10.6% consecutively (as of 7 July 2021).
 
Bipartisan Infrastructure Framework
Key parts of infrastructure deal between White House, group of senators