liza, Author at CC&L Financial Group Ltd.

AI infrastructure investment has moved upstream. The advent of ChatGPT, Claude and other AI applications fueled demand for semiconductor chips that enable the software to “think.” The demand concurrently brought about record capital expenditures to build out hyperscale data centres housing those chips. Now the bottleneck is even more basic: power. For AI, electricity is no longer a utility input; it is strategic infrastructure.

Data centre growth needs energy – a lot of it

That shift is colliding with a US grid whose expansion is constrained at multiple points: new generators are stuck in interconnection queues; interstate transmission still requires approvals across multiple jurisdictions; transformer shortages are delaying grid upgrades; and local opposition is increasingly slowing or cancelling data centre projects. North American Electric Reliability Corporation’s 2025 long-term reliability assessment warned that 13 of 23 North American assessment areas face resource-adequacy challenges over the next decade, underscoring that the issue is not only energy volume, but deliverability and reliability.

Electric Power Research Institute’s Powering Intelligence 2026 report makes the same point from the data centre side. Its “Generation and Capacity Impacts of Data Center Load” analysis finds that data centre growth could require large additions of generation and transmission capacity, but that supply-chain, siting and permitting constraints may limit how fast those additions arrive. In least-cost scenarios, incremental data centre load is met primarily by new and existing gas generation rather than carbon-free resources.

Getting power to where it’s hard to get

That naturally explains the recent order flow into large reciprocating engines. In April, the Finnish vessel engine manufacturer Wärtsilä Oyj Abp announced a 790 MW off-grid power solution for a new Texas data centre facility, using its 50SG natural gas engines. Wärtsilä explicitly framed the order around fast access to reliable power in a region where the grid cannot adequately meet urgent AI-infrastructure demand. Around the same time, the Korean shipbuilder HD Hyundai Heavy Industries Co. Ltd. disclosed that it had signed a US data centre power generation equipment contract based on its 20 MW-class HiMSEN engines, citing total capacity of 684 MW.

The appeal is straightforward. Large reciprocating engines are modular, dispatchable, fast-starting, scalable in increments and deployable closer to load than central-station plants. Compared with combined-cycle gas turbines, nuclear projects or major transmission upgrades, they can often be installed in shorter phases and avoid waiting years for grid interconnection. For a data centre developer, speed-to-power can be as important as cost-of-power.

Maintaining engine power at sea and on land

HD Hyundai Marine Solution Co. Ltd. (443060 KS) in our Emerging Markets Small Cap Strategy is the sole authorized provider of maintenance, repair and overhaul (MRO) aftermarket services to HiMSEN engines worldwide. As a HD Hyundai-affiliate, the company benefits from having HD Hyundai Heavy Industries – the world’s second largest shipbuilder and the largest manufacturer of medium-speed 4-stroke vessel engines – as a captive market. Of approximately 17,000 HiMSEN units in operation globally (most of them generating power for over 4,000 ships at sea), roughly 2,000 units are generating power on the ground.

Could data centres move offshore?

Mitsui O.S.K. Lines and Karpowership’s Kinetics have already signed a memorandum of understanding to develop what they describe as the world’s first integrated floating data centre platform, hosted on a retrofitted vessel and supplied by a powership capable of using LNG. In that scenario, vessel-engine makers are also powering the physical layer of AI.

Photo of the Crestpoint team in front of the King + Park construction site.

Crestpoint Real Estate Investments is pleased to continue its partnership with Vestcor and Anthem Properties on King + Park, a landmark mixed-use masterplan at the gateway to Burnaby. Joined by the Mayor of Burnaby and other guests, Crestpoint, Vestcor and Anthem celebrated the project’s ceremonial groundbreaking on June 1, 2026.

Situated in a transit-oriented setting, the full King + Park masterplan includes:

724 rental homes in two towers over a shared podium (Phase 1 now under construction)
Restoration of the iconic Boot Office Tower
512,350 sq ft of retained and restored office space (the Boot)
43,402 sq ft of commercial space delivered across all phases
1,559 strata homes (future phase)

As Max Rosenfeld, Executive Vice President and Head of Asset Management at Crestpoint, noted, King + Park is “a distinct opportunity to honour heritage and reimagine a site simultaneously,” and Crestpoint is thrilled to be partnering on a vision that will have a positive, lasting impact.

Read the full press release

Equity markets have continued to reach new highs despite a backdrop that, on the surface, should be far less supportive. War in the Middle East, elevated oil prices, tighter financial conditions and policy uncertainty have done little to derail risk appetite. There have been periods of volatility along the way, but none have meaningfully disrupted the broader trend higher. Instead, equities have rallied, credit markets have remained firm, and investors have repeatedly looked through shocks that, in prior cycles, may have triggered a more meaningful repricing.

The engines behind the rally

The strength in equity markets is being driven by an alignment of two forces that are both unusually powerful and highly concentrated.

At the centre is the AI-led investment cycle, which stands out not simply due to the scale of the capex cycle (Chart 1), but its structure. Investment is being driven by a small group of hyperscalers committing unprecedented sums to data centres and supporting infrastructure that by some estimates could reach USD$5 trillion over the next five years; increasingly, companies are tapping global credit markets to fund it. Credit markets, notably, are not acting as a constraint. Heavy issuance has been readily absorbed, with strong demand keeping spreads tight even as supply increases. In Canada, Alphabet’s inaugural maple bond issue amounted to a record CAD$8.5 billion and was very well absorbed. In effect, funding conditions are enabling, not limiting, the economic expansion.

Chart 1: US tech investment has surged
Source: US Bureau of Economic Analysis, Macrobond

At the same time, corporate earnings have been unequivocally strong. The S&P 500 is on track to deliver approximately 28% year-over-year earnings growth in Q1, the fastest pace since 2021. More importantly, this strength has been broad-based. Ten sectors are reporting earnings growth, with seven sectors posting double-digit gains, spanning technology, financials, industrials and materials (Chart 2).

Chart 2: US earnings growth strong and broad-based
Source: FactSet. Note: As of May 21, 2026

While earnings are broad, what is driving revisions, sentiment and capital allocation is a relatively small group of AI and AI-adjacent companies. Yet despite the scale of investment, its direct contribution to GDP growth is still limited. What makes the current environment unusual is that the rally is not purely speculative, as earnings are delivering. So long as the combination of broad earnings resilience holds alongside a concentrated growth engine, the path higher can remain intact.

Disappearing downside risks

If the engine explains the direction of markets, the persistence of the rally reflects the repeated failure of risks to materialize. Geopolitics is the clearest example, with the disruption in the Strait of Hormuz raising oil prices significantly, but not to levels consistent with the scale of the shock. Meanwhile, other macro risks are also being largely looked through. Labour markets continue to soften, though this appears to be bottoming, leaving employment and income growth still sufficient to sustain consumption.

Importantly, inflation has proven persistent. April US producer prices rose sharply, with headline PPI increasing 1.4% month over month, reflecting a surge in energy-related components. Beneath the surface, however, the picture appears benign. Core consumer goods prices in the April CPI report were flat on the month, and core services, while sticky, have not accelerated meaningfully (Chart 3). Additionally, the transmission mechanism appears weaker than in prior cycles – including the post-pandemic period – when rapid wage gains and highly stimulative fiscal and monetary policy reinforced inflation across the economy.

Chart 3: Core services prices relatively contained
Source: US Bureau of Labor Statistics, Macrobond

Markets are not ignoring risks – they are observing that those risks are not translating into negative earnings or growth outcomes and are adjusting accordingly. With each risk that passes without consequence, markets grow more conditioned to look through shocks. Concern fades faster, and positioning rebuilds more quickly.

What could break this positive risk sentiment?

Bond yields have been moving higher, with front-end rates rising sharply and yield curves flattening, a combination typically associated with tightening financial conditions. Since the start of the conflict, US 10-year yields have risen materially, and 30-year yields have breached the psychologically important 5% threshold. Front-end rates have risen even more aggressively, reflecting both inflation pressure and resilient growth. At the same time, risk assets have continued to rally alongside this move, an unusual late-cycle dynamic that is resulting in a system drifting toward ever higher interest rates. Interestingly, the same forces supporting risk assets are also contributing to this tightening. The AI-driven investment cycle is sustaining demand, reinforcing inflation pressures (Chart 4), and keeping policy more restrictive than markets might otherwise expect. In that sense, the optimism driving the rally is also what prevents policy from easing.

Chart 4: Near-term inflation pressures building
Source: US Bureau of Labor Statistics, Macrobond

This creates a growing tension. Historically, higher discount rates and tighter financial conditions have weighed on equity valuations. Policy adds another layer of uncertainty. Central banks are moving away from an easing bias, with growing inflation risks. They are concerned about allowing inflation expectations to become unhinged from their target levels, should the narrow commodity price shock pass through into a reacceleration of core inflation (although the current assumption is that energy disruptions are temporary and manageable). Additionally, in the US, the transition to a new Federal Reserve Chair introduces another unknown that could reverse the previous regime’s flexibility.

Portfolio strategy

In balanced portfolios, positioning remains modestly underweight equities and fixed income. This stance was implemented at the end of the first quarter as markets entered an “inflation shock first, growth risk later” phase. Recession risks have since moderated, leading equities to now trade near all-time highs, embedding relatively optimistic growth assumptions. As a result, patience and flexibility remain important. We look to add risk opportunistically during periods of market weakness or positioning-driven selloffs. We favour Canadian equities over US equities, with a secular positive view on Canada.

Within fixed income portfolios, the environment remains challenging as strong growth, sticky inflation and higher energy prices continue to put upward pressure on bond yields. Markets have steadily reduced expectations for interest rate cuts and begun to price the possibility of rate hikes in both Canada and the US. This has resulted in yield curve flattening and higher rates. We expect this trend to continue, though not in a linear fashion. Duration exposure will continue to be managed tactically with a bias to be shorter-than-benchmark, with an emphasis on flexibility rather than large directional positions.

Fundamental equity portfolios remain positioned around businesses with resilient earnings. While the broader recovery remains intact, we have paused further increases in cyclical exposure to help mitigate downside risk. We have also reduced exposure to business models most vulnerable to AI-driven disruption, while selectively increasing exposure to sectors positioned to benefit from the broader AI-related capex and infrastructure cycle, including commodity-linked industries.

The current environment continues to favour an opportunistic approach, and we look to add to risk cautiously.

Connor, Clark & Lunn Infrastructure is featured in Green Street’s examination of renewed investor interest in freight rail as US supply chains are re‑engineered for resilience and efficiency. Green Street underscores the role of rail infrastructure in supporting long‑term industrial competitiveness, while highlighting the view that essential, hard‑asset businesses with strong fundamentals remain well positioned to benefit from these structural shifts – a view that CC&L Infrastructure, owner of Alpenglow Rail, shares.

“More manufacturing in the Americas is going to create more opportunity for rail. It just will,” said Ryan Lapointe, Managing Director, Connor, Clark & Lunn Infrastructure. “Anybody who’s manufacturing product in significant volume is going to need access to rail,” he continued, highlighting the role of rail in “resilient” supply chains.

The full article by Matt O’Brien, Journalist, Green Street is below.

Freight rail in vogue as US retools industrial supply chains

Originally published on March 26, 2026

Freight rail, particularly short-haul rail, is seen as a key part of fortifying the US’s ongoing reindustrialization.

Last year, US manufacturing construction spending hit historically high levels of roughly $223 billion, more than double what 2021 registered, according to Brightsmith, an executive search firm in the clean energy manufacturing industry.

New factories for computer chips, batteries, EVs, pharmaceuticals, and data centers are largely driving, arguably, the reshoring and, certainly, the rebuilding of industry, with investors and policymakers hoping such efforts eventually bring back an era reminiscent of mid-20th-century American manufacturing might.

“From our standpoint, we’ve seen some successful movement on reshoring, and see the need for a more resilient global supply chain framework for reliably moving goods,” said Matthew Brand, COO and head of capital markets at ITE Management, an alternative asset manager focused on critical transportation equipment. “Depending on the businesses that get reshored, we may see more intermediate and final assembly than full scale manufacturing.”

For infrastructure investors, the shift to reshoring and recalibrating supply chains – accelerated by post-COVID vulnerabilities and reinforced by the Trump administration’s tariffs – means favoring assets with contracted, diversified cash flows that sit at the new nodes of a more “atomized” North American network, industry participants said in interviews.

Brand identified rails, containers, chassis and trailers – though executives said rail could stand to benefit the most.

“More manufacturing in the Americas is going to create more opportunity for rail. It just will,” said Ryan Lapointe, managing director at Connor, Clark & Lunn Infrastructure, which owns the Alpenglow Rail platform of six rail terminals in key industrial markets. “Anybody who’s manufacturing product in significant volume is going to need access to rail.”

Connor, Clark & Lunn closed a private-placement debt deal for Alpenglow late last year at attractive spreads, citing the platform’s blue-chip customer base, full-suite transloading services and role in “resilient” supply chains. The use of proceeds included capacity for organic growth and M&A, both of which remain active pipelines.

The US Surface Transportation Board’s push to streamline regulation, with faster environmental reviews and potential categorical exclusions that could reduce project costs and timelines, comes at an ideal time and could foster marginal activity that otherwise may not materialize.

Loosening regulation and changing economic patterns mean short-haul railroads and intermodal terminals stand to gain disproportionately as components and sub-assemblies move multiple times between suppliers in a reshored or nearshored environment, rather than arriving in bulk at a handful of gateway ports.

John Porcari, managing director at lnvestcorp Corsair Infrastructure Partners, pointed to that pattern exactly.

“I know there’s a lot of attention on the class one railroads and there should be, but I’d also look at the short haul railroads where they may be a more important part of the supply chain with components and subcomponents than they were in the past. … the same applies to trucking as well,” he said.

Sophisticated original equipment manufacturers, including those in automotive and aerospace, are still mapping their tertiary suppliers and realizing that onshoring assembly does not mean onshoring the components, executives said. The result: more east-west, north-south and even intra-regional movements that favor flexible, rail-linked distribution.

Re/on/near shoring

Those interviewed attested that the reshoring of industry back to the US has been a mixed picture. But for certain businesses that have come back to North America, some assets are seen as central to those changes.

Ports themselves are not being left behind, but the focus is shifting. Cesar Valero Mendoza, partner at ALG, a transportation-infrastructure consultancy, said interest remains high for new or expanded container terminals on the Gulf of Mexico aimed squarely at nearshoring volumes – smaller than traditional international gateways but aligned with rising Mexican manufacturing.

Mexico’s established Tier 1-2-3 supplier base and productivity edge versus Asia, even under higher tariffs, continue to support the case, Valero added.

“Mexico turns out to be more competitive or gains some competitiveness versus Asia,” he said.

Cold storage at inland intermodal nodes, expanded short-haul rail spurs and leasing platforms that can scale with OEM assembly growth are among the more immediately investible pockets, executives said.

Technological tailwinds are also emerging. Mendoza flagged autonomous-truck corridors and dedicated logistics zones as likely developments within five years, driven by persistent driver shortages.

Meanwhile, the Al data center boom is amplifying these logistics tailwinds. Massive power demand growth – the first sustained increase in 25 years after decades of flat load – and the need for construction materials and equipment are boosting rail and intermodal volumes, particularly in the Southeast and Gulf Coast, where reshoring manufacturing and digital infrastructure are converging.

Morgan Stanley Infrastructure Partners sees “bullish pulls” in the Gulf and Southeast from power demand driven by both data centers and reshoring activity, said managing director and head of Americas Chris Ortega.

“So I think reshoring, as opposed to nearshoring, in areas that have overall robust growth for a variety of factors, including reshoring, are the places where we’re going to leg in and express that point of view,” he said. “The ability to diligence the duration or the specific impacted trade routes for international trade volumes due to tariffs and geopolitical events is challenging – and I’m not sure how one does that with conviction over a five-plus-year perspective.”

Tom Murray, managing partner at Power Sustainable Infrastructure Credit, agreed.

He sees reshoring creating broad incremental infrastructure demand.

“If you’re going to reshore things … there’s going to be an incremental need for more infrastructure to support that,” Murray said, explicitly including transport and logistics.

With governments facing deficits and competing priorities such as military spending, private capital – including direct lending – is expected to fill more of the gap.

“Private capital is out there looking to put money to work in reasonable risk-return opportunities,” Lapointe said. “Where things are going to struggle to get built is where there is no reasonable risk-return opportunity.”

In a world where geopolitics and trade are becoming fractured and more uncertain, investors may find stability for projects supporting reindustrialization by harnessing long-term public-private partnership financing arrangements, Porcari said.

“Certainly, uncertainty can be priced into the financing and contracts,” he said. “In fact, we are beginning to see tariff clauses written into P3 contracts.”

Congress will adjudicate on STB’s authorization renewal at the end of this year, presenting policymakers an opportunity to tweak legislation for federal loan programs, like the Transportation Infrastructure Finance and Innovation Act and Railroad Rehabilitation and Improvement Financing Program, so that more assets are eligible for such funding, added Porcari, who was port envoy for the Biden-Harris Administration’s Supply Chain Disruptions Task Force and deputy secretary and COO of the US Department of Transportation under President Obama.

Last week, the federal government and its private-sector partners announced huge P3 deals in the power sector – a 10GW gas-fired power generation project with NextEra Energy and a $4.2 billion high-voltage electric transmission initiative with AEP Ohio.

Meanwhile, those who cannot build are buying.

M&A pipelines in rail terminals and related logistics assets remain active, with disciplined buyers waiting for the right fit with existing customer footprints. About eight deals have been announced over the past 15 months, according to various trade news publications covering the sector.

Major Class I railroad mergers are rare due to strict STB oversight, while short-hauls occur only slightly more frequently. Between 2021-2025, each year averaged roughly one to three deals annually, except for 2025, when around six were closed, according to the same sources.

Some of the more notable deals from the last 12 months have been FTAI Infrastructure’s acquisition of Class II Wheeling & Lake Erie Railway in August 2025; Canadian National clinching its deal for Iowa Northern Railway in January 2025; Union Pacific Corporation’s mammoth $85 billion deal for Norfolk Southern Corporation, creating America’s first transcontinental railroad; among others.

A couple of weeks ago, Ridgewood Infrastructure acquired a controlling interest in Sierra Railroad Company, a California-based shortline rail platform – a move that was seen as expanding the platform’s strategic access to key dairy, agricultural, and industrial corridors, as well as interchanges with Union Pacific and BNSF Railway.

Shrugging off SCOTUS tariff ruling

And while the STB is pursuing a more growth-oriented regulatory environment, government also clouded the reshoring narrative when the US Supreme Court struck down the president’s legal justification for his tariff policy.

Yet, private sector executives doubt that move will kibosh reshoring.

Murray said the Supreme Court decision is unlikely to derail the reshoring trend, as national security and supply-chain resilience remain the primary drivers.

“Even with the recent SCOTUS tariffs decision removing or reducing some of the barriers to importing products, the incentives to encourage reshoring, such as federal loan and grant programs, as well as local and state economic incentives, remain,” Porcari said. “The Supreme Court has taken away a primary stick to encourage reshoring, but the carrots remain.”

Reprinted with permission from the author.

Driven by years of underinvestment, rapid urbanization and the need to adapt to a power-driven, technology-led world, infrastructure spending is a key tool governments use to stimulate economic growth. Regardless of what drives the allocation, civil infrastructure – the systems that underpin essential societal functions – remains a foundational focus of government spending.

The US government’s current focus on infrastructure

The 2021 Infrastructure Investment and Jobs Act (IIJA) is in full swing and will last until 2030 and beyond. The approximately USD1.2 trillion US expenditure bill is allocated to roads, bridges, transport safety, transit, freight, chargers, power and broadband.

Spending on US highways and streets is currently at historic highs, reaching a seasonally adjusted annual rate of approximately $149.5 billion in January 2026. This sector remains a primary driver of public infrastructure growth, bolstered by long-term federal funding. But despite high spending, the American Society of Civil Engineers (ASCE) estimates a $684 billion funding gap for roads over the next decade (2025–2035).

The business cycle is such that architecture and engineering firms gain from the bulk of the work at the onset, executing on planning and design. Then come the bids and proposals on work and equipment, which ultimately fill the backlogs of suppliers and contractors.

The right tools for the job

Based in Downers Grove, Illinois, Federal Signal Corporation (FSS US) manufactures specialized equipment for infrastructure maintenance, public safety and environmental cleaning. The company operates between 24 to 27 principal manufacturing facilities worldwide and directly manages over 40 service centres. Already within our portfolio, the company is one that may be positioned to benefit from infrastructure spending by providing the necessary equipment and technology to support civil infrastructure projects.

Federal Signal’s diversified business groups offer products that serve multiple infrastructure subsectors. The Environmental Solutions Group is the largest manufacturer of dump trucks in the United States. They also manufacture street sweepers, sewer cleaners and industrial vacuum loaders, safe-digging and road-marking equipment. The Safety and Security Systems Group provides technology and systems used by first responders and industrial facilities to protect lives and property.

Federal Signal delivers a comprehensive suite of equipment designed to support a wide range of IIJA-funded project areas, as highlighted in the table below.

IIJA allocation (in USD)	Area of infrastructure investment	Federal Signal equipment
$10 billion	Roads and bridges	Street sweepers, vacuum excavators
$55 billion	Water and sewers	Sewer cleaners
$65 billion	Broadband	Safe-digging trucks
$73 billion	Electrical grid modernization	Safe-digging trucks
$11 billion	Transportation safety programs	Public warning systems, emergency vehicle equipment

Cementing a provider of construction materials

Large scale infrastructure projects such as bridges and transit require longer planning and often are fully realized toward the tail end of the spending period. Global Alpha is positioned through Eagle Materials Inc. (EXP US), an important producer of cement, to strategically capture the roughly USD550 billion allocated for new construction materials.

Eagle Materials possesses regional market dominance: The company’s 70+ facilities are concentrated in the US Heartland, Sun Belt and Mountain West. These inland markets are protected by high transportation costs, which limit competition from cheaper foreign imports.

Between 2024–2025, Eagle invested heavily in modernizing plants like the Laramie, Wyoming facility, increasing cement output by 50% specifically to meet the rise in IIJA-funded municipal projects. Within the same time frame, Eagle converted nearly 100% of its cement capacity to Portland Limestone Cement (or PLC). This low-carbon product is increasingly required for government-funded projects that prioritize environmental sustainability.

Strategically, the company shifted its sales mix toward non-residential and public infrastructure, sectors projected to grow by roughly 5% in 2026, to offset recent softening in the residential housing market.

Global phenomena

Civil infrastructure is being accelerated on a global basis; China spent USD550 billion on transport infrastructure in 2025 alone. Japan just began a USD140 billion mid-term plan for the implementation of national resilience. Global Alpha is exposed to global civil infrastructure buildout through Sany Heavy Equipment International Holdings Co. Ltd. (631 HK).

Hong Kong-listed Sany is the world’s third-largest heavy equipment manufacturer. Their equipment is designed with a focus on being “easy to own, easy to operate and easy to service,” prioritizing essential functionality over excessive technical complexity. The company is also a global leader in concrete machinery, especially after acquiring the legendary German brand Putzmeister. Products include truck-mounted pumps, stationary pumps and concrete mixers. Large-scale engineering contractors account for approximately 45% of Sany’s revenue.

That demand is increasingly coming from outside China: overseas markets now contribute 64% of revenue, led by Africa, where sales surged 55% on the back of infrastructure buildouts. To capitalize on this momentum, Sany has shifted its mix toward infrastructure-heavy “civil works” applications, helping drive a 41% increase in net profit in 2025.

Keeping assets clean, clear and operational

Global Alpha also holds Bucher Industries AG (BUCN SW), a Swiss industrial group that provides specialized machinery and components for essential infrastructure, specifically through its Bucher Municipal and Bucher Hydraulics divisions. Unlike heavy civil construction firms, Bucher focuses on the maintenance, cleaning and operational safety of existing civil assets.

Bucher’s connection to civil infrastructure is primarily functional, ensuring that public and commercial traffic areas remain operational and safe. For sewer and drainage infrastructure, Bucher produces specialized sewer cleaning and water recycling units essential for managing urban water networks and preventing flash flooding on major roadways. Bucher also provides construction site support through its heavy-duty sweepers, specifically engineered to handle the abrasive materials (e.g., aggregate, spoil) found on large-scale infrastructure construction sites.

Civil infrastructure is more than a standalone spending category – it is the operating backbone that enables other critical buildouts, from power and water management to digital connectivity. For Global Alpha, this creates diversified, real-economy exposure to long-duration public investment, spanning both new construction and the ongoing maintenance that keeps cities functioning.

Digital infrastructure is becoming an increasingly prominent topic in institutional investment discussions. In a recent Benefits and Pensions Monitor article, “Is it time to embrace digital infrastructure?”, managing directors Kaitlin Blainey and Andrew Parkes were interviewed, exploring how investors are approaching this fast‑growing segment and what it could mean for portfolio construction.

Highlighted in the piece is how digital infrastructure is being viewed as a complement to traditional infrastructure portfolios rather than a replacement. As investor demand for essential, long-duration assets grows, digital infrastructure is increasingly seen as aligned with the defensive and income-oriented characteristics long associated with the broader asset class.

The article also reflects the growing importance of expertise beyond asset selection alone. Digital infrastructure can play a strategic role within diversified institutional portfolios, particularly as investors weigh considerations around scalability, resilience and long-term capital deployment.

Read the full article

Lime and limestone are materials that have shaped human civilization for thousands of years. Limestone is a common sedimentary rock formed mostly from calcium carbonate. It develops over millions of years from either marine organisms (shells, coral, plankton, etc.) or chemical precipitation in oceans and lakes.

Limestone is converted into lime by burning (calcining) it in a kiln at 1000ºC. Lime can then be mixed with water (hydrated) to form hydrated lime. Finished lime then absorbs CO2 and slowly transforms back to calcium carbonate (i.e., limestone). The lime cycle is one of the oldest known chemical cycles used by humans

Limestone been used as building material for centuries, from pyramids to great cathedrals of Europe, including Notre Dame, Westminster Abbey and St Peter’s Basilica. More commonly it is used as an ingredient in cement and concrete, and in building roads. It is also a widely used industrial mineral, either unprocessed or transformed into a lime derivative.

Limestone is estimated to account for 15% of surface rock on Earth, but high-purity limestone valued in industrial, construction, environmental and agricultural applications is much rarer as are deposits of scale that can be commercially exploited.

Applications across industries

SigmaRoc PLC (SRC LN), a recent addition to the portfolio, is a lime and minerals group targeting quarried materials assets in the UK and Northern Europe. The business is asset backed with over 2.7 billion tonnes of mineral reserves and resources, the equivalent of over 100 years of resources.

SigmaRoc has exposure to the construction, industrial and environmental end markets with applications such as:

Construction

Quarried limestone and granite materials are used in both infrastructure and residential applications such as the construction of roads, railways, bridges, ports, airports and buildings. The main products include aggregates, asphalt, ready mix concrete, pre-cast concrete and dimension stone.

Industrial

Lime is used as a flux in steel and copper production to remove impurities and control melt chemistry.
Quicklime is involved in pulp and paper production.
Limestone powder is used as a filler in paints and adhesives.

Environmental

Quicklime, slaked lime and limestone powder remove acidic compounds from flue gas.
Lime treats drinking water by raising pH, and wastewater by reducing toxicity.
In soil treatment, lime raises soil pH.

Quarries and their locations

SigmaRoc has an advantage in that it owns quarries. In countries where it does not own quarries (the UK and Poland), it has on-site kilns and long-term supply agreements with the quarry owner. Owning the quarry means fixed costs are manageable and ensures both the quantity and quality of supply.

Having quarries located close to customers has key logistical advantages. Firstly, the weight of the product means it is not feasible to ship long distances. Lime products are dangerous to transport due to lime’s high chemical reactivity. It is classified as corrosive under transport regulations and producers need regulatory compliance to ship. Quicklime degrades over time, meaning shipping long distances is unfeasible, reducing the threat of imports.

Integration, growth and megatrends

The three main lime producers in Europe are SigmaRoc and two privately owned Belgian companies. After those, the market is fragmented and the SigmaRoc has a “buy-and-build” growth model. The strategy is to acquire assets (quarries, lime and limestone businesses, related infrastructure) in fragmented local markets, then integrate them to extract synergies, scale and efficiency.

SigmaRoc has cyclical recovery potential and is poised to benefit from megatrends that support long-term growth. If macro conditions improve – supported by infrastructure spending, lower rates and renewed housing policy – SigmaRoc’s scale and flexibility could drive outperformance. Its diversified presence across geographies also helps smooth region-specific cycles.

Future growth is also supported by the ongoing electrification of economy. This creates a huge increase in demand for batteries, and lime is required in the mining and refining of lithium. European steel – and especially green steel – should also benefit from electrification, so long as the industry is protected from high carbon inputs, potentially reduced import quotas and higher tariffs. Beyond electrification, flue gas scrubbing creates an environmental market for lime, a process that addresses shipping emissions.

Limestone and lime are attractive markets due to high barriers to entry, the irreplaceable nature of product and the lack of material import flow into Europe. With an M&A track record as the foundation for future growth, we believe that makes SigmaRoc a compelling investment in the materials sector.

What’s New

We are pleased to announce the recent expansion of our LP Fund platform with the addition of an international equity strategy managed by our Quantitative Equity team and available to eligible US investors.

Market Index Returns (USD)	Q1 (%)	YTD (%)
MSCI All Country World	-3.1	-3.1
MSCI All Country World ex-US	-0.6	-0.6
S&P 500	-4.3	-4.3
MSCI Emerging Markets	-0.1	-0.1

Quantitative Equity Strategies

Long Only Strategies	Q1 (%)	YTD (%)
CC&L Q Global Equity	0.1	0.1
MSCI ACWI Net	-3.2	-3.2
CC&L Q International Equity	2.2	2.2
MSCI ACWI ex-US Index Net	-0.7	-0.7
CC&L Q Emerging Markets Equity	3.6	3.6
MSCI Emerging Markets Net	-0.2	-0.2
CC&L Q Global Small Cap	4.8	4.8
MSCI ACWI Small Cap Index Net	1.1	1.1
CC&L Q International Small Cap Equity	3.4	3.4
MSCI ACWI ex-US Small Cap Net	-0.5	-0.5

Long/Short Equity Extension Strategies¹	Q1 (%)	YTD (%)
CC&L Q ACWI Equity Extension	0.2	0.2
MSCI ACWI Net	-3.2	-3.2
CC&L Q Emerging Markets Equity Extension	4.7	4.7
MSCI Emerging Markets Net	-0.2	-0.2
CC&L Q World ex-US Equity Extension	2.5	2.5
MSCI World ex-US Index Net	-0.9	-0.9
CC&L Q US Equity Extension	-1.6	-1.6
S&P 500 Index (Net 15%)	-4.4	-4.4

Equity Market Neutral Strategies¹	Q1 (%)	YTD (%)
CC&L Q Global Equity Market Neutral (USD)	6.4	6.4
Merrill Lynch 3-month T-bill Index	0.8	0.8

About Connor, Clark & Lunn Investment Management Ltd.

Founded in 1982, Connor, Clark & Lunn is a privately owned investment management organization dedicated to delivering outstanding client service and a wide range of attractive investment solutions to our diverse client base. We understand the investment challenges faced by individuals, pension plans, corporations, foundations, mutual funds, First Nations and other organizations, and focus our efforts on meeting their investment needs by offering a comprehensive array of investment strategies, spanning traditional and alternative asset classes in a variety of quantitative and fundamental styles.

All data is as of March 31, 2026 and stated in US dollars. Source: Connor, Clark & Lunn Financial Group Ltd., FTSE Global Debt Capital Markets Inc., MSCI Inc., Thomson Reuters Datastream and S&P. Portfolio performance is preliminary, based on a representative account for the applicable strategy and may be subject to change. All performance data is gross of fees unless otherwise stated. Gross performance figures are stated after trading expenses and operating expenses but before management fees and performance fees, if applicable. Operating expenses include items such as custodial fees for segregated accounts and for pooled vehicles would also include charges for valuation, audit, tax and legal expenses. Management fees and additional operating expenses would reduce the actual returns experienced by investors. 1. These strategies are subject to performance fees, which will further reduce actual returns experienced by investors.

This publication is for information purposes only and is not an offer to buy or sell, nor a solicitation of an offer to buy or sell any security or other financial instrument advised by CC&L.

For further information on performance, please contact us at [email protected].

Source: MSCI Inc. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. MSCI makes no express or implied warranties or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. This report is not approved, reviewed or produced by MSCI.

What’s New

Market Index Returns (Local Currency)	Q1 (%)	YTD (%)
MSCI All Country World	-2.5	-2.5
MSCI All Country World ex-US	1.1	1.1
S&P/TSX Composite	3.9	3.9
S&P 500	-4.3	-4.3
MSCI Emerging Markets	2.2	2.2
FTSE Canada Universe Bond	0.2	0.2

Foreign Equities

Foreign Equity Strategies	Q1 (%)	YTD (%)
CC&L Q Global Equity	1.8	1.8
CC&L Q Global Equity Extension¹	1.7	1.7
MSCI ACWI Index (CAD) (net)	-1.5	-1.5
CC&L Q Global Small Cap	6.8	6.8
MSCI ACWI Small Cap Index (CAD) (net)	2.9	2.9
CC&L Q International Equity	4.1	4.1
MSCI ACWI ex-US Index (CAD) (net)	1.1	1.1
CC&L Q International Small Cap	5.3	5.3
MSCI ACWI ex-US Small Cap Index (CAD) (net)	1.3	1.3
CC&L Q Emerging Markets Equity	5.3	5.3
MSCI Emerging Markets Index (CAD) (net)	1.6	1.6
CC&L Q US Equity Extension¹	1.4	1.4
S&P 500 Index (Net 15%)	-2.6	-2.6

MSCI ACWI Sector Q1 Total Returns (Local)

TOP 3

34.8%

Energy

9.3%

Utilities

7.6%

Materials

BOTTOM 3

-6.1%

Information Technology

-7.5%

CommunicationCommuni-cation Services

-10.2%

Consumer Discretionary

MSCI ACWI Country Q1 Total Returns (Local)

TOP 3

27.2%

Norway

24.1%

Korea

21.1%

Thailand

BOTTOM 3

-12.2%

Denmark

-13.6%

India

-18.9%

Indonesia

Canadian Equities

Canadian Equity Strategies	Q1 (%)	YTD (%)
CC&L Fundamental Canadian Equity	3.0	3.0
CC&L Equity Income & Growth	4.3	4.3
CC&L Equity Income & Growth Plus	3.6	3.6
CC&L Q Canadian Equity Core	8.2	8.2
CC&L Q Canadian Equity Growth	8.2	8.2
CC&L Q Canadian Equity Extension¹	7.8	7.8
CC&L Canadian Equity Combined (Q Core/Fundamental)	5.6	5.6
S&P/TSX Composite Index	3.9	3.9
CC&L Fundamental Canadian Small/Mid Cap	11.2	11.2
60% S&P/TSX Small Cap Index & 40% S&P/TSX Completion Index	9.8	9.8

TSX Sector Q1 Total Returns

TOP 3

30.1%

Energy

11.2%

Utilities

10.7%

Materials

BOTTOM 3

-4.3%

Real Estate

-4.5%

Health Care

-22.5%

Information Technology

Canadian Fixed Income

Fixed Income Strategies	Q1 (%)	YTD (%)
CC&L Core Bond	0.3	0.3
CC&L Universe Bond Alpha Plus¹	1.9	1.9
CC&L Core Plus Fixed Income	0.2	0.2
CC&L High Yield Bond²	-0.3	-0.3
FTSE Canada Universe Bond Index	0.2	0.2
CC&L Long Bond	0.0	0.0
CC&L Long Bond Alpha Plus¹	1.6	1.6
FTSE Canada Long Term Overall Bond Index	0.0	0.0
CC&L Short Term Bond	0.2	0.2
FTSE Canada Short Term Overall Bond Index	0.3	0.3
CC&L Money Market	0.6	0.6
FTSE Canada 91 Day T-Bill Index	0.5	0.5

Bond Market Statistics

Balanced Strategies

Balanced Strategies	Q1 (%)	YTD (%)
CC&L Balanced	1.8	1.8
25% S&P/TSX Capped Composite Index & 35% MSCI ACWI Net (CAD$) & 40% FTSE Canada Universe Bond Index	0.6	0.6
CC&L Enhanced Balanced	2.1	2.1
20% S&P/TSX Capped Composite Index & 40% MSCI ACWI Net (CAD$) & 40% FTSE Canada Universe Bond Index	0.3	0.3
CC&L Core Income & Growth	2.6	2.6
50% S&P/TSX Composite Index & 25% S&P/TSX Capped REIT Index & 25% FTSE Canada All Corporate Bond Index	2.4	2.4

Absolute Return Strategies

Absolute Return Strategies¹	Q1 (%)	YTD (%)
CC&L Multi-Strategy	6.0	6.0
CC&L All Strategies	8.4	8.4
CC&L Fundamental Equity Market Neutral	7.4	7.4
CC&L Q Global Equity Market Neutral (Cdn)	5.6	5.6
CC&L Fixed Income Absolute Return	0.1	0.1
CC&L Absolute Return Bond	-0.2	-0.2
FTSE Canada 91 Day T-Bill Index	0.5	0.5

About Connor, Clark & Lunn Investment Management Ltd.

All data is as of March 31, 2026 and stated in Canadian dollars, unless otherwise stated. Source: Connor, Clark & Lunn Financial Group Ltd., FTSE Global Debt Capital Markets Inc., MSCI Inc., Thomson Reuters Datastream and S&P. Portfolio performance is preliminary, based on a representative account for the applicable strategy and may be subject to change. All performance data is gross of fees unless otherwise stated. Gross performance figures are stated after trading expenses and operating expenses but before management fees and performance fees, if applicable. Operating expenses include items such as custodial fees for segregated accounts and for pooled vehicles would also include charges for valuation, audit, tax and legal expenses. Management fees and additional operating expenses would reduce the actual returns experienced by investors. 1. These strategies are subject to performance fees, which will further reduce actual returns experienced by investors. 2. CC&L High Yield Bond Strategy has a custom benchmark, please contact us for more information.

This publication is for information purposes only and is not an offer to buy or sell, nor a solicitation of an offer to buy or sell any security or other financial instrument advised by CC&L.

For further information on performance, please contact us at [email protected].

Connor, Clark & Lunn Financial Group (CC&L Financial Group) is pleased to announce that Josh Borys is joining its leadership team as a Managing Director with a focus on private market affiliates, effective April 1, 2026.

Josh has deep experience in private debt, with prior roles at Sagard Credit Partners and CPP Investment Board in this asset class. He holds an HBA from the Richard Ivey School of Business at Western University.

“Josh strengthens our Managing Director group by adding dedicated capacity in private markets – an area that represents a significant portion of our business today and will be a key driver of future growth, both with existing affiliates and new affiliates over time,” said Michael Walsh, President & Managing Director, CC&L Financial Group.

Josh will be based in Toronto.