Renaissance Global Infrastructure Fund
Provides stable growth, steady income and solid diversification, Renaissance Global Infrastructure Fund offers investors access to this unique asset class, previously only available through institutional-style investments.
Key Benefits
Stable Growth
Strong Diversification
Steady Income & Inflation Protection
Stable Growth
Defensive asset class
Regardless of market direction, the need for essential
services such as roads, water, electricity and gas remains
consistent. During the last major global downturn
between 2000 and 2003, the MSCI World Index
fell approximately 30% while the UBS Global
Infrastructure Index rose by 17%.
Access to a growing market
As the global population continues to increase and living
standards around the world rise, there is vast demand for
improved infrastructure. Governments are increasingly
turning to the private sector to undertake the necessary
projects and, as a result, the investment opportunities
continue to grow.
Long-term stable returns
With high barriers to entry and low levels of competition
due to the nature of asset class, the majority of
infrastructure companies act as monopolies. Given the
length of many of the projects, stable returns are
predictable over the long term. Since the beginning of the
decade, infrastructure companies listed on the world’s
stock markets have exhibited lower volatility and higher
returns than global equities.
Strong Diversification
Infrastructure assets generally have a lower correlation to global equities, offering attractive diversification benefits across geographic regions and sectors. By adding infrastructure to a portfolio of traditional asset classes, investors can further enhance their level of diversification, and reduce overall volatility.
Steady Income & Inflation Protection
Attractive yields
As projects reach the latter stages of development, the
companies involved tend to provide higher distribution
yields. Due to the earnings certainty of the assets,
distributions are usually sustainable over the long term.
Inflation hedge
A natural inflation hedge exists for many infrastructure
assets. For example, the revenues of electricity
companies and toll roads tend be linked to inflation and
therefore act as a natural hedge. Airports, toll roads and
utilities in particular are often obliged by their local
government to increase their charges by an inflation-linked
amount each year.
Investor Material
>> Building a stable road ahead for investors
>> Infrastructure: The New Frontier
>> No Cracks in Canadian Infrastructure Stocks