An investor cannot invest directly in an index and index performance does not reﬂect the deduction of any fees, expenses or taxes.
The BofA Merrill Lynch U.S. 7-10 Year Treasury Index is composed of U.S. Treasury Notes with a 7-10 year maturity. The Datastream World Gas, Water & Multi-Utilities Index is a global index of companies in these sectors compiled by Thomson Reuters Datastream. The Datastream World Pipelines Index is a global index of energy pipeline companies compiled by Thomson Reuters Datastream. The S&P 500 Index is an unmanaged index of 500 large-capitalization, publicly traded stocks representing a variety of industries. The Dow Jones Brookfield Global Infrastructure Index measures the stock performance of publicly listed infrastructure companies. Unless otherwise noted, asset classes mentioned in this material are represented by the following indexes: Global infrastructure: The FTSE Global Core Infrastructure 50/50 Net Tax Index is a market-capitalization-weighted index of worldwide infrastructure and infrastructure-related securities and is net of dividend withholding taxes. Constituent weights are adjusted semi-annually according to three broad industry sectors: 50% utilities, 30% transportation, and a 20% mix of other sectors, including pipelines, satellites, and telecommunication towers. The utilities sector excludes the subsector generation utilities. The index is free-ﬂoat market-capitalization-weighted and is reconstituted annually with quarterly rebalances. Global stocks: MSCI World Index, a free-ﬂoat-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets.
Data quoted represents past performance, which is no guarantee of future results. The views and opinions in the preceding commentary are as of the date of publication and are subject to change without notice. There is no guarantee that investors will experience the type of performance reﬂected in this commentary. There is no guarantee that any historical trend illustrated in this commentary will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that a market forecast made in this commentary will be realized. The views and opinions in the preceding commentary are as of the date of publication and are subject to change without notice. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice and is not intended to predict or depict performance of any investment. We consider the information in this commentary 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. Investors should consult their advisors with respect to their individual circumstances.
These materials are provided for informational purposes only and reﬂect the views of Cohen & Steers, Inc. and sources believed by us to be reliable as of the date hereof. The mention of specific securities is not a recommendation or solicitation to buy, sell or hold any particular security.
Risks of Investing in Global Infrastructure Securities
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. No representation or warranty is made as to the efficacy of any particular strategy or fund or the actual returns that may be achieved.
Risks of Investing in MLP Securities
An investment in MLPs involves risks that differ from a similar investment in equity securities, such as common stock, of a corporation. Holders of equity securities issued by MLPs have the rights typically afforded to limited partners in a limited partnership. As compared to common shareholders of a corporation, holders of such equity securities have more limited control and limited rights to vote on matters affecting the partnership. There are certain tax risks associated with an investment in equity MLP units. Additionally, conﬂicts of interest may exist among common unit holders, subordinated unit holders and the general partner or managing member of an MLP; for example, a conﬂict may arise as a result of incentive distribution payments. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment, including the risk that an MLP could lose its tax status as a partnership. MLPs may trade less frequently than larger companies due to their smaller capitalizations, which may result in erratic price movement or difficulty in buying or selling. MLPs may have additional expenses, as some MLPs pay incentive distribution fees to their general partners. The value of MLPs depends largely on the MLPs being treated as partnerships for U.S. federal income tax purposes. If MLPs were subject to U.S. federal income taxation, distributions generally would be taxed as dividend income. As a result, after-tax returns could be reduced, which could cause a decline in the value of MLPs. If MLPs are unable to maintain partnership status because of tax law changes, the MLPs would be taxed as corporations and there could be a decrease in the value of the MLP securities.
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