The fund seeks capital appreciation and inflation-protected income by investing in companies across any size outside the United States.
The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team Invests in securities of infrastructure companies listed on a domestic or foreign exchange, throughout the world, including the United States.
The team defines infrastructure companies as those companies that derive at least 65% of their operating earnings from the ownership or operation of infrastructure assets.
Also, the team defines infrastructure assets as the physical structures, networks and systems of transportation, energy, water, waste, and communication.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team focuses on companies that are mispriced.
In addition, the team prefers companies which have high barriers to entry, superior pricing power, durable growth and predictable cash flows.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund invests at least 40% of its net assets, or if conditions are not favorable, invests at least 30% of its net assets, in publicly traded securities of infrastructure companies whose primary operations or principal trading market is in a foreign market.
The fund has the flexibility to maintain exposure to securities of infrastructure companies in the United States and in at least three countries outside the United States.
The infrastructure securities in which the fund typically invests are within sectors such as oil and gas storage and transportation, airport services, highways and rail tracks, marine ports and services, and multi/electric/gas/water utilities.
The fund may invest up to 75% of its net assets in depositary receipts, such as American Depositary Receipts, European Depositary Receipts and Global Depositary Receipts
The fund may also invest in stapled securities to gain exposure to infrastructure companies in Australia.
Additionally, the fund may invest up to 30% of its net assets in real estate investment trusts and up to 20% of its net assets in limited partnerships and master limited partnerships listed on a domestic or foreign exchange.
The fund will invest more than 25% of its net assets in the securities issued by companies operating in the infrastructure industry.
