Real Assets. Real Expertise.
Sprott Global Infrastructure Fund
Fund Performance Series A as at November 30, 2016
|1 MTH||YTD||1 YR||Inception|
What are Infrastructure Investments?
Infrastructure assets represent a broad mix of businesses that provide essential services to society. They are vital to economic development and as a result, benefit from relatively inelastic demand. Infrastructure companies often have sustainable long-term cash flows, inflation-linked revenues and are protected by high barriers to entry.
Why Invest in Listed Infrastructure?
In today’s uncertain markets, listed infrastructure can provide sustainable yield, inflation protection, growth and portfolio diversification to help investors reach their financial goals.
Stable, revenue-oriented investments
The long lifespan of typical public/private infrastructure contracts and the durability of the assets help provide steady cash flows from fees.
Infrastructure securities have historically shown low correlation to traditional equities and fixed income.
Infrastructure assets and services are necessities and therefore the demand for them is less sensitive to price changes.
Growing need for infrastructure
OECD projects the level of investment needed to meet growing worldwide infrastructure demand will equal 3.5% of world GDP through the year 2030, or more than $55 trillion. The areas in most need for investment are expected to be development and modernization of roads, power networks, water systems and telecommunication networks. In the U.S. alone, the estimated infrastructure investment needed by 2020 is $3.6 trillion.
Report card for America's Infrastructure
|Bridges||C+||Public Parks and Recreation||C-|
|Hazardous Waste||D||Solid Waste||B-|
Source: American Society of Civil Engineers 2013
Replacement costs of physical assets increase with inflation, typically causing the value of infrastructure investments to appreciate. What’s more, infrastructure contracts typically link fees to inflation measures, allowing for inflationary price increases.
Portfolio Selection Process
|A combination top-down and bottom-up process|
|Macro views determine sector and regional allocations|
|Detailed company-level analysis is supported by a robust analytical framework|
The manager seeks to find the securities that have the best prospects for above-average capital appreciation.
To mitigate risk, the Sub-advisor follows a strict, repeatable stock selection process and sell discipline. Each security added to the portfolio has a sell target price; and each holding is monitored for any change in fundamentals, competitive positioning and investment thesis and the sell targets are adjusted accordingly.
- Political and legislative risk
- High debt, large deficits, weak currencies
- Adequate financial disclosure; lax accounting standards
- Business risks
- Management depth or experience
- Financial resources
- Limited stock liquidity
- Simplified Prospectus
- Simplified Prospectus Amendment
- Annual Information Form
- Annual Information Form Amendment
- Point of Sale Disclosure - Series A
- Point of Sale Disclosure - Seires F
- Point of Sale Disclosure - Series I
- Quarterly Portfolio Disclosure Q1
- Quarterly Portfolio Disclosure Q3
- Annual Financial Statement
- Semi-Annual Financial Statement
- Annual MRFP
- Semi-Annual MRFP