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

Analysis

Unique and rigorous investment process

Blends proprietary top-down, macro-level framework with rigorous bottom-up, company-level research

Cycle-tested record

One of the longest track records covering all types of market environment; strong historical outperformance

WHY INFRASTRUCTURE OPPORTUNITIES

Private equity mindset

High conviction strategy focused on real returns; fundamental, catalyst-driven investment approach that targets core/core-plus pure-play infrastructure companies with attractive valuations

Differentiated performance profile

Historically strong total returns, reduced volatility and inflation hedging

Compelling investment opportunity

Private infrastructure investors are increasingly targeting listed assets and/or companies as they look to invest raised capital

The Cohen & Steers Infrastructure Opportunities Strategy is designed to provide access to supportive long-term infrastructure fundamentals, with more of a focus on pure play opportunities and companies with greater acquisition potential. We believe these companies could offer higher returns to compensate for potentially higher risk compared to broad global listed infrastructure. These companies also tend to be under-researched, which could create higher alpha generation potential. The strategy seeks to provide significant capital appreciation potential over the entire business cycle.

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 global listed infrastructure.

FEATURED INSIGHT

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.

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.

PORTFOLIO MANAGEMENT

An experienced team

Benjamin Morton

Head of Global Infrastructure

25 years of experience

Tyler Rosenlicht

Portfolio Manager, Global Infrastructure

12 years of experience

Thuy Quynh
Thuy Quynh Dang

Portfolio Manager, Global Infrastructure

23 years of experience

+8 analysts and associates

We believe inefficiencies create opportunities for active managers and we seek to take advantage of the following potential opportunities in the infrastructure market:

Capitalize on niche, pure-play prospects

with exposure to greater acquisition activity and industry consolidation trends, which have the potential for higher growth than their larger counterparts.

Exploit informational inefficiencies

caused by limited sell-side analyst coverage, which present active managers with alpha generation opportunities.

Identify potential targets of private infrastructure capital allocation (aka, dry powder) using our proprietary acquisition framework.

The philosophy that guides our global listed infrastructure strategies 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 precedent, 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 resulting from changing macroeconomic conditions
  • The opaqueness, lack of history and limited investor experience

APPROACH

Our investment process

The strategy employs a total-return, relative-value approach to investing in infrastructure, designed to create a concentrated portfolio of typically smaller core infrastructure companies in the United States and globally.

Investment universe
We begin by identifying the core global infrastructure investment universe. 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.

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 overlay
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. We also use our Proprietary Acquisition Framework to identify companies that screen well under our private market valuation model.

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.

A portfolio managers perspective Opportunities in listed infrastructure

ESG: opportunities and challenges within real estate

November 2022 | 6 mins

Environmental, social and governance issues present demonstrable risks and opportunities for real estate. Khalid Husain, Head of ESG, and Jan Willem van Kranenburg, Senior Analyst, discuss how our integrated ESG approach at Cohen & Steers assesses and values these topics as part of our investment approach among different real estate sectors and companies.

Closed-end fund commentary 3Q 2022

October 2022 | 3 mins

Closed-end funds finished the quarter down following persistent inflation and continued talk of monetary policy tightening.

Institutional Investor: The Best Real Estate Returns Come After Recessions

October 2022 | 1 min

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.

With Intelligence: Cohen & Steers’ new private RE group eyes discounted retail, office

October 2022 | 1 min

Head of Private Real Estate James Corl spoke to With Intelligence about the Private Real Estate Group’s current market outlook and the opportunities that the team is looking at, including retail, surban office and housing.

Recession and the roadmap for listed and private real estate

September 2022 | 17 mins

We see an economic backdrop that will create an opportunity for strong vintage returns for both listed and private real estate. Both cyclical and secular shifts are likely to create investment opportunities, and we think allocating across both private and listed real estate will be critical.

3 reasons to consider preferreds when rates are rising

September 2022 | 10 mins

Preferred securities have characteristics that can potentially help mitigate the effects of rising interest rates.

Need to contact us?

We’d be happy to answer questions about our investment solutions or any corporate-related inquiries.