With listed infrastructure at its most attractive relative valuations in years, investors are presented with an opportunity to access essential service providers through a discounted, diversified, income-focused strategy.
KEY TAKEAWAYS
- Listed infrastructure has historically delivered competitive returns with lower volatility and downside resilience, while offering diversification benefits relative to broad equity markets.
- Secular trends such as AI-driven power demand, digital transformation, and supply chain reshoring are fueling a generational need for infrastructure investment—creating long-term tailwinds for the asset class.
- The UTF rights offering provides existing shareholders a discounted opportunity to increase their holdings, potentially enhancing income and exposure to listed infrastructure at attractive valuations.
UTF is focused on listed infrastructure companies and is currently the largest listed closed-end fund focused on infrastructure. UTF’s investment objective is total return with an emphasis on income with a minimum invested 80% in listed infrastructure companies. It’s also permitted to invest 20% of its managed assets in preferred and other debt securities, including below-investment-grade-rated issues.
People may ask, what are infrastructure companies? These are companies that provide essential services. Such as utilities, pipelines, toll roads, airports, railroads, marine ports, and telecommunications.
Listed infrastructure has little overlap with broad equity allocations—in the low single digits with the MSCI World Index. And infrastructure provides access to subsectors and investment themes that are typically under-represented in broad equity market allocations.
Additionally, listed infrastructure historically offers the potential for competitive performance relative to global equities, lower volatility (supported by the relatively predictable cash flows of infrastructure businesses), improved risk-adjusted returns (as measured by a higher Sharpe ratio), and resilience in down markets, with infrastructure historically experiencing roughly 60 to 70% of the market’s decline, on average, in periods when global equities retreat. These are all portfolio benefits that listed infrastructure can provide to a broader stock allocation.
Looking at it from an EV/EBITDA or cash flow multiple perspective, current listed infrastructure valuations are at the most attractive levels we have seen relative to global stocks in over 15 years. By this we mean, infrastructure stocks have typically traded at an average premium of around 10% to global stocks, but now they are trading at a nearly 20% discount. In our view, this provides an attractive entry point for listed infrastructure. Relative to private infrastructure, listed is also cheap, as we see private funds buying assets from listed companies at multiples well above where listed companies are trading today.
We are excited and feel that now is an attractive entry point for listed infrastructure, especially considering that several major secular themes, including rapidly growing power demand, digital transformation of economies, and deglobalization are converging to create compelling investment opportunities.
Due to an acceleration in artificial intelligence adoption, electrification trends, and reshoring of manufacturing, overall power demand is expected to grow at a rate not seen since the 1980s. We think this growth in power demand is set to benefit key infrastructure sectors, such as utilities and midstream energy.
Increased adoption of 5G networks and the buildout of artificial intelligence technologies is producing a rapidly evolving digital landscape. Satisfying this massive increase in data consumption will require enormous investments in existing and new infrastructure, with beneficiaries spanning multiple sectors including electric and gas utilities, data centers, cell towers and satellite companies.
Also, the ongoing evolution of global supply chains—driven largely by geopolitics—can create tremendous opportunities for companies that move people and goods. Infrastructure companies such as freight rails, marine ports, airports and toll road operators are critical in facilitating the global economy. We believe active management is essential to navigating shifting trade flow dynamics and challenges for listed infrastructure companies across the transportation sector.
We feel that there is a generational opportunity in infrastructure capital formation. We believe nearly $100 trillion in infrastructure spending is required between now and 2040 to meet the aspirations that are reshaping the global economy, but government spending alone won’t be sufficient. We anticipate this will create a substantial funding gap that the private sector will need to fill, through privatization of government assets, redevelopment of legacy assets, building and construction of new projects, IPOs and new companies, innovative investment structures and companies expanding their asset base.
Political and regulatory risks are the most prominent risks facing the infrastructure asset class. Companies may be subject to regulation by various governmental authorities and may be affected by regulatory policies like rates charged to customers, changes in tax laws and tariffs, as well as operational and other mishaps. Of course, those risks can also create trading opportunities. As active investors who conduct deep fundamental analysis, we believe we are well positioned to identify and capitalize on the diverse investment opportunities presented by changing economic and interest rate environments, as well as evolving outlooks and growth trajectories that may result from policy actions and regulatory outcomes.
UTF is conducting a transferable rights offering, allowing current shareholders the opportunity to buy additional common shares at a discount to market price. Shareholders as of September 22nd will receive one right for each common share owned, and five rights are required to subscribe for a new common share at the subscription price. The offer expires on October 16th but may close earlier on a firm-by-firm basis, so please check with your financial advisor or financial institution. More information about the offer can be found at cohenandsteers.com/utf-rights.
Although past performance isn’t necessarily indicative of future results, since inception in 2004 through August 31, 2025, UTF has generated average annual returns on market price of 9.7% and on NAV of 9.8%, which translates into 631% cumulatively on market price and 641% on NAV. This is significantly more than its benchmark, which returned 6.8% annualized and 312% cumulatively since the fund’s inception.
ABOUT THE AUTHORS
Benjamin Morton, Executive Vice President, is Head of Global Infrastructure and a senior portfolio manager for Cohen & Steers’ infrastructure portfolios, including those focused on master limited partnerships.
Data quoted represents past performance, which is no guarantee of future results. The views and opinions expressed herein are as of August 31, 2025 and subject to change without notice. There is no guarantee that any market forecast set forth in this interview will be realized. There is no guarantee that any historical trend illustrated herein will be repeated in the future, and there is no way to predict precisely when such a tend will begin.
Inception date for Cohen & Steers Infrastructure Fund is March 30, 2004. Benchmark: Linked UTF Index is represented by 80% S&P 1500 Utilities Index / 20% ICE BofA Fixed Rate Preferred Securities Index through 12/31/09, and by 80% UBS Global Infrastructure & Utilities 50/50 Index Net / 20% ICE BofA Fixed Rate Preferred Index through 03/31/15 and 80% FTSE Global Core Infrastructure 50/50 Net Tax Index / 20% ICE BofA Fixed Rate Preferred Index thereafter.
Investors should consider UTF’s investment objective, risks, charges and expenses carefully before investing. The Fund’s prospectus supplement and accompanying prospectus will contain this and additional information about the Fund and additional information about the rights offering, and should be read carefully before investing. For further information regarding the rights offering, or to obtain a prospectus supplement and the accompanying prospectus, please contact the Fund’s information agent, Georgeson LLC, at (866) 989-9991.
This material is not, and is not intended as investment advice, an indication of trading intent or holdings or the prediction of investment performance. All fund-specific information is the latest publicly available. All other information is current as of the date of this presentation. All opinions and forward-looking statements are subject to change at any time without notice.
Cohen & Steers disclaims any responsibility to update such views and/or information. This information is deemed to be from reliable sources; however, Cohen & Steers does not warrant its completeness or accuracy. This presentation is not intended to, and does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any security, product, investment advice or service (nor shall any security, product, investment advice or service be offered or sold) in any jurisdiction in which Cohen & Steers is not licensed to conduct business, and/or an offer, solicitation, purchase or sale would be unavailable or unlawful.
Investments in global infrastructure securities will likely be more susceptible to adverse economic or regulatory occurrences affecting global infrastructure companies than in investment 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.
CERTAIN RISKS. Investing in the Fund involves risks, including the risk that investors may receive little or no return on their investment or may lose part or all of their investment. Below is a summary of certain principal risks of investing in the Fund. For a more complete discussion of the risks of investing in the Fund, see “Risks Relating to the Offer“ in the prospectus supplement and “Principal Risks of the Fund” in the prospectus. Investors should consider carefully the following principal risks before investing in the Fund. An investment in the Fund is subject to investment and market risk, including the possible loss of an investor’s entire investment. Before making an investment decision, a prospective investor should (i) consider the suitability of this investment with respect to his or her investment objectives and personal situation and (ii) consider factors such as his or her personal net worth, income, age, risk tolerance and liquidity needs.
TAXATION. The Fund has elected to be treated and has qualified and intends to continue to qualify annually to be treated for U.S. federal income tax purposes, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended. Accordingly, the Fund generally will not pay corporate level federal income taxes on any net ordinary income or capital gains that it currently distributes to its common shareholders. To qualify and maintain its qualification as a RIC for U.S. federal income tax purposes, the Fund must meet specified source-of-income and asset diversification requirements and distribute annually at least 90% of its net ordinary income and realized net short-term capital gains more than realized net long-term capital losses, if any. See “Terms of the Offer—U.S. Federal Income Tax Consequences” and “Taxation” in the accompanying prospectus supplement and prospectus, respectively.
DILUTION. Record date shareholders who do not fully exercise their rights will, at the completion of the offer, own a smaller proportional interest in the Fund than owned prior to the offer. The completion of the offer will result in immediate voting dilution for such common shareholders. Further, the expenses associated with the offer will immediately reduce the net asset value of each outstanding common share. In addition, if the subscription price is less than the net asset value per common share as of the expiration date, the completion of this offer will result in an immediate dilution of the net asset value per common share for all existing common shareholders (i.e., will cause the net asset value per common share of the Fund to decrease). It is anticipated that existing common shareholders will experience immediate dilution even if they fully exercise their rights. Such dilution is not currently determinable because it is not known how many common shares will be subscribed for, what the net asset value per common share or market price of the Fund’s common shares will be on the expiration date or what the subscription price per common share will be.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained herein constitute forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the Fund’s actual results or level of performance to be materially different from any future results or level of performance expressed or implied by such forward looking statements. Such factors include, among others, those listed under “Risks Relating to the Offer” in the prospectus supplement and “Principal Risks of the Fund” in the prospectus. As a result of these and other factors, the Fund cannot give you any assurances as to its future results or level of performance, and neither the Fund nor any other person assumes responsibility for the accuracy and completeness of such statements. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein.
UBS Securities LLC is acting as dealer manager for the rights offering. In the U.S., securities underwriting, trading, and brokerage activities and M&A advisory activities are provided by UBS Securities LLC, a registered broker/dealer that is a wholly owned subsidiary of UBS AG, a member of the New York Stock Exchange and other principal exchanges, and a member of Securities Investor Protection Corporation.
September 22, 2025
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