Real Assets. Real Expertise.
Sprott Global Infrastructure Fund


Fund Performance Series A as at November 30, 2016

1 MTH YTD 1 YR Inception
-1.6% 8.1% 4.6% 5.6%


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.

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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.

Portfolio diversification
Infrastructure securities have historically shown low correlation to traditional equities and fixed income.

Consistent demand
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

Aviation D Ports C
Bridges C+ Public Parks and Recreation C-
Dams D Rail C+
Drinking Water D Roads D
Energy D+ School D
Hazardous Waste D Solid Waste B-
Inland Waterways D- Transit D
Levees D- Wastewater D

 Source: American Society of Civil Engineers 2013

 

tile-infrastructure-inflation-hedge.gifInflation hedge
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

 

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  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. 

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Risk Mitigation

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.

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  • Political and legislative risk
  • Corruption
  • High debt, large deficits, weak currencies

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  • Adequate financial disclosure; lax accounting standards
  • Business risks
  • Management depth or experience
  • Financial resources

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  • Limited stock liquidity
  • Custody
 

 

 

Documents

 

 

Regulatory Documents

 

 

 

Unit Price (NAV - Series A)

Current Price
as at January 16, 2017
$9.92
Daily Change $0.02

Fund Details - Series A

Fund Type Global Equity
Inception Date September 1, 2011
Registered Tax Plan Status 100% Eligible
Min. Initial Investment $1,000
Min. Subsequent Investment $25
Valuations Daily
Management Fee 2.0% annual - (A)
1.0% annual - (F) 
Performance Fee None
Min. Investment Term 20 Days (1.5% Penalty)
Risk Tolerance Low - Medium

Fund Codes

Series A SPR 355
Series F SPR 356
Series A - LL SPR 358

Investment Objective

The investment objective of the Fund is primarily to maximize risk adjusted long-term returns and secondarily to achieve a high level of income. The Fund focuses on achieving growth of capital through securities selection and pursues a long-term investment program with the aim of generating capital gains. The Fund seeks to provide a moderate level of volatility and a low degree of correlation to other asset classes through diversifying across a relatively concentrated group of global infrastructure stocks.


Investment Strategy

In selecting investments for the Fund, the portfolio advisor primarily focuses on the securities of companies which receive the majority of their earnings from ownership of infrastructure investments. Infrastructure company earnings are generally regulated and predictable, with rate increases often tied to inflation. As such, the portfolio advisor focuses on the attractiveness of valuations relative to projected growth rates through macroeconomic analysis, followed by fundamental research on all potential investments. The portfolio will be positioned in accordance with the portfolio advisor’s market view. Geographic and sector allocations will vary significantly over time.

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