Strong yield & potential for capital gains
- While their prices fluctuate, reliable infrastructure stocks are less volatile than other dividend paying stocks as they have sustainable and predictable profit and dividend growth. Coupled with decades of growing demand for infrastructure, they represent an opportunity for strong yield and capital appreciation.
- Many infrastructure holdings have direct control of inflation via legislated tariffs.
- These tariffs deal with real cost inflation, rather than CPI and hence offer clearer yield protection than real return bonds.
Variety of risk and return profiles
- Range from low-risk regulated assets to moderate-risk energy projects
- Inflation linked assets
- Less vulnerable to economic cycles
Who manages the solution?
Capital Innovations’ CIO Michael Underhill has over 20 years of investment experience and is the author of the bestseller "The Handbook of Infrastructure Investing" - now recommended by the CFA Institute and used as the instructor's text for Multiple Infrastructure Investing classes. He is a founding member of the Steering Committee for the United Nations Principles for Responsible Investment.
"Sewage isn’t sexy, but now it’s called infrastructure and everyone is investing in it. Inelastic demand for these essential services and inflation linked cash flows are the underpinnings of our investments, so whether you are in a recession or depression, people continue to flush their toilets and take showers…or at least we hope they would"
- Michael Underhill
How do we deliver results?
- Invest in a concentrated portfolio of companies that own infrastructure and have stability of cash flow
- Invest in highly liquid stocks with a minimum of 70 percent of the cash flow of those companies coming from direct ownership of the infrastructure
Where is your money invested?
The Exemplar Global Infrastructure Fund invests in infrastructure assets, which represent a broad mix of businesses that provide essential services to society. The fund invests in energy, utilities, capital goods, telecom services and transportation. Investments are made in both developed and emerging markets.
How does the Exemplar Global Infrastructure Global Fund fit into my overall portfolio?
This fund is suitable for:
- Yield focused investors who wish to enhance the yield of a more conservative portfolio while preserving their spending power
- Investors who want exposure to the growth potential of emerging markets without taking undue risk
- Balanced fund investors that want a risk and return profile lower than broad equity markets