Digital Infrastructure
The strategy seeks to generate capital appreciation by investing in companies that we believe facilitate or benefit from the exponential growth of data usage and the evolution of the digital infrastructure ecosystem.
WHY COHEN & STEERS
Experienced global investment team
Our investment team is one of the largest dedicated to listed infrastructure investing, with leadership that has overseen our infrastructure investing since 2004
First-mover advantage
Development of new investment strategies focused on the digital infrastructure ecosystem
Industry access
Global investment teams provide on the ground access to companies and assets
WHY DIGITAL INFRASTRUCTURE
Access to the next generation of infrastructure
Companies that we believe facilitate or benefit from the secular trend of exponential growth of data usage and the evolution of the digital infrastructure ecosystem
Concentrated portfolio and approach
Designed to minimize overlap with commonly held technology names
Multi-sector exposure
Targets a balance of larger secular winners and smaller, less well-known companies that can drive alpha across three segments: infrastructure, hardware and software
The growth and importance of data in societies and economies has continued to increase as digital solutions are adopted by consumers. Businesses rely more heavily on data to make decisions and differentiate themselves. A growing number of data points are continuously generated and require a variety of industries to facilitate transfer and usability. This puts the owners, operators and developers of digital infrastructure assets in a unique position.
The Cohen & Steers Digital Infrastructure Strategy employs a total-return, relative-value approach to investing in global listed infrastructure. The strategy invests in companies that we believe facilitate or benefit from the exponential growth of data usage and the evolution of the digital infrastructure ecosystem. The strategy accesses the growing demand for digital infrastructure across three different segments: infrastructure, hardware and software. The strategy seeks to generate capital appreciation over an entire business cycle.
Our portfolio managers are able to draw upon digital experts across both our listed real estate and infrastructure teams. These experienced resources are dedicated to analyzing infrastructure, real estate, and digital asset securities.
FEATURED INSIGHT
Archived – Essential assets: The case for listed infrastructure
Investors’ search for diversification and inflation protection has put a spotlight on infrastructure, made brighter by massive public investment programs and the accelerating transition to a digitized, decarbonized economy.
August 2023 | 1 min
WHY INVEST WITH US
Delivering value to our clients
Cohen & Steers has been investing in listed infrastructure since we launched our flagship Global Listed Infrastructure Strategy in 2004. Based on our commitment to global listed infrastructure and our drive for excellence, we have built a platform positioned to outperform our peers and deliver compelling returns for our clients.
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PORTFOLIO MANAGEMENT
An experienced team
+1 analyst
PORTFOLIO SPECIALIST GROUP
Supporting our investment team and clients
As data has become irreplaceable for societies and critical drivers for many companies’ growth, the evolution of the digital ecosystem is now a powerful secular trend, and we believe there is a multiyear growth opportunity within digital infrastructure.
Digital transformations are positively affecting many industries
which creates a diversified investment universe to capitalize on the trend.
We believe a broad exposure to the entire data value chain
allows for tactical allocation while remaining exposed to the theme of digitalization.
The strategy could help broaden an existing infrastructure allocation
or a thematic allocation to increase exposure to this long-term secular trend.
APPROACH
Our investment process
The strategy’s process is intended to create a concentrated portfolio of companies that derive significant revenues from the digital infrastructure ecosystem.
Investment universe
Our core investment universe includes owner/operators of the large-scale infrastructure, physical hardware, and digital software assets that create, and derive significant revenues from, the digital infrastructure ecosystem. We eliminate illiquid securities and companies that do not have the secular/cyclical characteristics we seek.
Fundamental research
Analysts are responsible for conducting detailed bottom-up research, developing high-conviction views on fundamentals and valuations on the companies they cover. We continually reassess management’s capabilities to add value and deliver on its goals. In addition, we integrate ESG factors into our research and valuation models.
Subsector analysis
The team assesses global investment cycles, product cycles, and economic cycles for investment opportunities and evaluates trends at the subsector level. We use a proprietary sub-sector allocation framework and a multi factor ranking model to screen subsectors based on both a fundamental and valuation basis.
Portfolio construction
After we have determined subsector positioning, outputs from security-level models quantify relative value within each subsector. As valuations change, we rotate capital among individual securities. Risk management, diversification, liquidity and other factors are also key considerations.
Changing the imperative from ‘energy transition’ to ‘energy addition’
Aggregate energy demand will continue to increase in the coming decades, which is creating attractive investment opportunities across both the alternative energy landscape and the traditional energy value chain.
Essential assets: The case for listed infrastructure
Investors’ search for diversification and inflation protection has put a spotlight on infrastructure, made brighter by massive public investment programs and the accelerating transition to a digitized, decarbonized economy.
Infrastructure investing in the new economic paradigm
The prospect of enduring inflation, anemic global growth and heightened market volatility in 2023 and beyond amplify the importance of a dedicated listed infrastructure allocation.
Institutional Investor: Competition Is Fierce for Private Infrastructure Deals. Here’s An Alternative
February 2023 | 1 minPortfolio Manager Tyler Rosenlicht spoke with Institutional Investor for a feature story on our recent infrastructure thought leadership and why listed infrastructure can be an attractive alternative or complement to private infrastructure in a portfolio.
What the energy transition means for infrastructure investing
The energy transition is providing numerous infrastructure opportunities as the world moves from hydrocarbons to renewable energy. With that said, challenges do exist, which points to the fact that renewables and conventional energy will need to work hand-in-hand on the road to Net Zero.
Inflation Reduction Act is a net positive for listed infrastructure
The Inflation Reduction Act of 2022 (IRA) addresses three key areas: climate issues, corporate taxes, and healthcare.
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We consider the information in this communication 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 own investment professional with respect to their individual circumstances.
Past performance does not predict future returns. Risks involved with investment, including potential loss of capital, are substantial and should be carefully considered. The views and opinions are as of the date of publication and are subject to change without notice. There is no guarantee that any historical trend illustrated above 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 above will be realized. Active management is not guaranteed to outperform the broader market index.
Important Risk Considerations: Investing involves risk, including entire loss of capital invested. There can be no assurance that the investment strategy will meet its investment objectives. Diversification is not guaranteed to ensure a profit or protect against loss. Since the strategy concentrates its assets in digital infrastructure securities, the strategy will be more susceptible to adverse economic or regulatory occurrences affecting digital infrastructure companies than a portfolio that is not primarily invested in digital 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.