Global Listed Infrastructure Focus
The strategy provides access to infrastructure assets in a concentrated portfolio of securities in which we have the highest conviction and offer the most attractive valuations according to our proprietary models.
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
Unique and rigorous investment process
Blends proprietary top-down, macro-level framework with rigorous bottom-up, company-level research
Strong 17-year+ track record, outperforming in both up and down markets
WHY LISTED INFRASTRUCTURE
Differentiated performance profile
Potential for strong total returns, reduced volatility and inflation hedging
Access to critical forces driving economic change
Including infrastructure modernization, digital transformations of economies, decarbonization and improvements in supply chain logistics
Attractive complement to private infrastructure
Offering diversified exposure with access to assets and industries that may be less available to private investors
The Cohen & Steers Global Listed Infrastructure Focus Strategy employs a total-return, relative-value approach to investing in global listed infrastructure. The strategy seeks to achieve attractive risk-adjusted total returns over the long term and to outperform its benchmark over a full market cycle (approximately 3–5 years). The strategy is concentrated in securities in which we have the highest conviction and offer the most attractive valuations according to our proprietary models.
Our global listed infrastructure team’s experience positions us to better navigate market risks and identify superior investment opportunities. The team comprises 11 professionals (with an average 13 years of investment experience) whose sole or primary responsibility is to the Global Listed Infrastructure Strategy.
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.
November 2021 | 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.
An experienced team
+9 analysts and associates
We believe listed infrastructure offers attractive long-term growth potential and inflation protection through favorable pricing mechanisms and predictable, often inflation-linked, cash flows. The philosophy that guides our Global Listed Infrastructure Strategy is underpinned by the following principles:
Global listed infrastructure markets are inherently inefficient
due to regulation, industry fundamental cycles, securitization of the asset class and a lack of dedicated specialist coverage, which provides opportunities for active investment managers to add value.
A strict definition of the investment universe is critically important to manage global listed infrastructure portfolios.
A disciplined investment process
that combines top-down industry/sector research with bottom-up company specific analysis can deliver a sustainable advantage because of the range of infrastructure subsectors with varying business models and economic sensitivities.
Experience and local, on-the-ground research are critical
to understanding local regulatory precedents, local languages and the prevailing political environment.
The delivery of superior risk-adjusted returns demands an embedded, comprehensive and multidimensional approach to risk management.
We seek to take advantage of the following inefficiencies in the global listed infrastructure markets:
- The discounting mechanism of public markets whereby price movements typically occur ahead of changes in fundamentals
- The variations in infrastructure subsector fundamentals that result from changing macroeconomic conditions
- The opaqueness, lack of history and limited investor experience
Our investment process
The strategy employs a total-return, relative-value approach, and we adhere to a strict definition of the listed infrastructure universe that focuses on core owners and operators of infrastructure assets.
We begin by identifying the core global infrastructure investment universe, with a strict focus on owners and operators of infrastructure assets with stable cash flows that tend to be regulated, in monopolistic or oligopolistic sectors that have high barriers to entry. Although the universe is global and well diversified on regional and sector bases, as an active manager we may choose not to invest in a particular country, subsector or company.
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.
A proprietary macroeconomic overlay ranks the attractiveness of infrastructure subsectors based on our view of key macro factors and drives subsector allocations in our portfolio.
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.
Closed-end funds finished the quarter down following persistent inflation and continued talk of monetary policy tightening.
Head of Private Real Estate James Corl spoke with Institutional Investor for a feature story on our recent whitepaper and why an optimized real estate portfolio may require access to both listed and private markets.
Need to contact us?
We’d be happy to answer questions about our investment solutions or any corporate-related inquiries.
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 global infrastructure securities, the strategy will be more susceptible to adverse economic or regulatory occurrences affecting global infrastructure companies than a portfolio 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. Concentrated strategies may present a higher degree of risk.