Pershing
“Global listed infrastructure is a unique, emerging investment theme that may offer investors both defensive benefits and compelling growth opportunities.”
Article Contributed By:
Cohen & Steers RIA Group
(800) 330-7348 (option 3)
www.cohenandsteers.com
Concerned investors are looking for investment strategies that have defensive characteristics as well as the potential for attractive total returns, and we believe that global listed infrastructure securities offer both. Predictable demand, sound fundamentals, record-low prices and the need to address years of underinvestment could well put global listed infrastructure securities in a position to generate stable growth and income for the next few years.
An Investment Theme for Bull and Bear Markets
The investment theme has always been characterized by a significant degree of regulation, monopolistic operations, inflation-adjusted cash flows, recession-protected total returns, and low long-term correlations with the broader equity and fixed income markets. The contractual nature of infrastructure companies’ income and their ability to pass on higher costs has allowed them to maintain real revenue growth, and has enhanced their likeliness to outperform in down markets.
The Stimulus Package
These securities are not immune to short-term share price volatility, of course, but their relatively predictable cash flows and dividend yields do provide some stability. While stimulus packages will likely center on government-owned assets—especially transportation (roads, bridges, airports, railroads) and utilities (electric transmission, wind generation, water) infrastructure—we also expect to see more listed investment opportunities as a result of growing reliance on private industry for infrastructure services, wider demand for infrastructure assets globally and increased investor awareness of the investment theme and its benefits.
Listed Infrastructure Complements Direct Infrastructure Investments
With its attractive total return potential and income characteristics, liquidity and transparency, listed infrastructure can serve as either a stand-alone investment or part of a broader infrastructure portfolio that includes direct investments. Listed and direct infrastructure share certain investment characteristics—most notably, long-lived assets with predictable cash flows. Listed infrastructure also provides attributes that direct investments do not offer:
- Active management
- Transparent corporate governance
- Liquidity
- Daily market pricing
- Diversification benefits
Conclusion
Global listed infrastructure is a unique, emerging investment theme that may offer investors both defensive benefits and compelling growth opportunities. Today’s volatile market conditions provide a very attractive investment environment, and an actively managed allocation to listed infrastructure has the potential to enhance risk-adjusted returns.
To learn more about the case for investing in global listed infrastructure securities and how you can best position this emerging investment theme within portfolios, please visit with a representative of Cohen & Steers at Pershing’s INSITE Conference, June 3rd-5th in Hollywood, Florida. Alternately, you may call the Cohen & Steers RIA Group at (800) 330-7348 (option 3).
Legal Notes
This presentation is for information purposes, and reflects prevailing conditions and our judgment as of this date, which are subject to change. It does not constitute investment advice or a recommendation or offer. We consider the information in this presentation to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment.
The performance data quoted represent past performance. Past performance is no guarantee of future results. You cannot invest directly in an index.
Please consider the investment objectives, risks, charges and expenses of the fund carefully before investing.
This and other information may be obtained by visiting cohenandsteers.com or by calling (800) 330-7348 and requesting a prospectus. Please read the prospectus carefully before investing.
Risks of Investing in Global Infrastructure Securities. Since the fund concentrates its assets in global infrastructure securities the fund will be more susceptible to adverse economic or regulatory occurrences affecting global infrastructure companies than an investment company that is not primarily invested in global infrastructure companies. Infrastructure issuers may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, operational or other mishaps, tariffs and changes in tax laws, regulatory policies and accounting standards. Foreign securities involve special risks, including currency fluctuation and lower liquidity. Some global securities may represent small and medium-sized companies, which may be more susceptible to price volatility than larger companies.
Sponsor Advertisement
