Objective and Strategy
The Fund seeks total return through growth of capital and current income. There can be no assurance that the Fund will achieve its investment objective.
The Fund seeks to achieve its investment objective by investing primarily in securities of infrastructure companies listed or traded on a Recognised Market. The Fund defines an infrastructure company as any company that derives at least 50% of its revenue or profits from the ownership or operation of infrastructure assets. The Fund defines infrastructure assets as the physical structures, networks and systems of transportation, energy, water, sewage, and communication.
Infrastructure assets currently include:
- toll roads, bridges and tunnels
- electricity transmission and distribution lines
- gathering, treating, processing, fractionation, transportation and storage of hydrocarbon products
- water and sewage treatment and distribution pipelines
- communication towers and satellites, and
Securities in which the Fund may invest include, but are not limited to, common, convertible and preferred stock, stapled securities (as described herein). The Fund may invest in limited partnership interests in the general partners of master limited partnerships (MLPs) where such general partners themselves are listed or traded on a Recognised Market and operate in the infrastructure industry. Other Fund investments may include warrants, depository receipts, exchange traded notes and investment companies including exchange traded funds providing exposure to infrastructure companies (the Fund will not invest more than 10% of its net assets in exchange traded funds established as Collective Investment Schemes). The Fund may also invest significantly in MLPs and their affiliates listed or traded on a Recognised Market. The Fund retains the ability to invest in infrastructure companies of any market size capitalisation.
Why Invest in the Brookfield Global Listed Infrastructure 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.
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.