Objective and Strategy
The Fund seeks to generate high risk-adjusted absolute returns with low correlation to the broad equity and fixed income markets. However, there can be no assurance that the Fund will achieve its investment objective.
Under normal market conditions, the Fund will seek to achieve its investment objective by taking long and short positions primarily in equity securities of publicly traded Infrastructure companies throughout the world. These include publicly traded securities of Infrastructure companies whose primary operations or principal trading market are in non-U.S. markets. The Fund defines “Infrastructure” as meaning long-life assets providing essential services for either the local economy or the global economy. Furthermore, the Fund considers an Infrastructure company to be any company that derives at least 50% of its revenue or profits from, or commits at least 50% of its assets to, either directly or indirectly, the ownership, operation, development, construction, servicing of, or supplying of materials to, Infrastructure assets. For purposes of selecting investments in Infrastructure companies, the Fund currently defines Infrastructure assets to include systems of transportation, energy, water and sewage, communication, and other essential services required for the normal function of society. Infrastructure assets are the physical structures and networks that provide these necessary services to society.
For a more complete discussion of the Fund's Investment Policy, please refer to the supplement to the prospectus.
Why Invest in the Brookfield Global Listed Infrastructure Long Short UCITS Fund
Opportunities driven by the growing demands for infrastructure spending
Years of underinvestment in developed economies have led to the obsolescence and deterioration of existing infrastructure assets, which need to be replaced or upgraded. Within emerging markets, the key drivers of infrastructure spending are generally tied to the build out of basic services to meet the demands of population growth, urbanization and a growing middle-class consumer. An investment in the Fund could provide an opportunity to capitalize on investment potential of these long-term mega-themes.
The Potential to Enhance Portfolio Diversification
The Fund’s strategy to invest in both long and short positions of infrastructure-related companies has the potential to enhance portfolio diversification through lower risk-adjusted returns that have a low correlation with stocks and bonds.
The Flexibility to Take Long and Short Positions
The ability to take both long and short positions provides the flexibility for the Manager to capitalize on the wide dispersion of returns within the asset class and potential opportunities created by factors such as evolving macroeconomic themes and event-driven market conditions. This flexibility also offers the potential to mitigate the risks of investing by hedging the portfolio with both long and short positions.
A Fund with Income and Growth Potential
Infrastructure companies—found in sectors such as transportation, utilities, energy transmission and communications—provide essential goods and services to businesses and consumers. Since the revenues they generate are often subject to contracts or regulation, infrastructure companies have the potential to generate relatively steady and enduring income streams. Infrastructure revenues may also benefit from long-term economic growth due to rising throughput, which can lead to capital appreciation potential.
The Potential Benefits of a Globally Diversified Approach
The Manager believes that a global approach to investing in infrastructure is very important, because not all regions of the global economy are at the same stage of the economic cycle, and different regions offer different types of opportunities. For example, U.S. infrastructure tends to be concentrated in the energy pipeline, communications and utility sectors. Transportation assets, such as toll roads, airports and ports, are much more prevalent in Europe and Asia. A multi-sector approach adds geographic diversification, which can help mitigate the regulatory and geopolitical risks of investing in a single region.