Global listed infrastructure equities, along with other real asset exposures, are underrepresented in core equity indexes. Global infrastructure industries provide essential services and has historically generated stable cash flows, offering lower volatility and potential diversification benefits when added to traditional portfolio allocations.
Global Listed Infrastructure Companies Underrepresented in Major Equity Indexes
Historically Lower Volatility and Downside Risk Relative to Traditional Equities and Other Real Asset Investments
Data as of 9/30/23. Source: Morningstar as of 9/30/23. Holdings overlap based on Morningstar Common Holdings Score %. Global REITS represented by FTSE EPRA Nareit Global REITs NR USD. Energy MLPs represented by Alerian MLP TR USD. Down capture ratio calculated versus the MSCI World NR USD Index. Standard Deviation and Down Capture Ratio calculated over trailing 5-years through 12/31/22. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results.
Consider MainStay CBRE Global Infrastructure Fund
Core infrastructure exposure
Invests in global companies that own and operate the infrastructure assets and services essential for economic growth and vitality.
High conviction approach
Investment process seeks to add value through active stock selection and sector allocation driven by proprietary research.
All-weather asset class
Infrastructure assets historically generated stable cash flows and exhibited low relative volatility compared with broad equities.
About Risk
The investment strategies, practices and risk analyses used by the Subadvisor may not produce the desired results.
Investments in infrastructure-related securities will expose the Fund to potential adverse economic, regulatory, political, legal and other changes affecting such investments. Issuers of securities in infrastructure-related businesses are subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental or other regulations and the effects of economic slowdowns.
MLPs carry many of the risks inherent in investing in a partnership. State law governing partnerships is often less restrictive than state law governing corporations. Accordingly, there may be fewer protections afforded investors in an MLP.
Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The risks of investing in emerging markets include the risks of illiquidity, increased price volatility, smaller market capitalizations, less government regulation, less extensive and less frequent accounting, financial and other reporting requirements, risk of loss resulting from problems in share registration and custody, substantial economic and political disruptions, and the nationalization of foreign deposits or assets.
Small and mid-cap stocks are often more volatile than large-cap stocks.
Because the Fund concentrates its investments in securities issued by companies principally engaged in the infrastructure group of industries, the Fund may be subject to greater risks and market fluctuations than a fund whose portfolio has exposure to a broader range of industries.
Portfolios concentrated in infrastructure securities and Master Limited Partnerships ("MLPs") may experience price volatility and other risks associated with non-diversification. Investment in infrastructure related companies may be subject to high interest costs in connection with capital construction programs, costs associated with environmental and other regulations, the effects of economic slowdown and surplus capacity, the effects of energy conservation policies, governmental regulation and other factors. MLPs often own interests Related to the oil and gas industries or other natural resources but may finance other projects. As such, MLPs will be negatively impacted by economic events adversely impacting that industry. Investments in MLPs may offer fewer legal protections than investments in corporations, and limited voting rights.
International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume.
Other risks of the Fund include but are not limited to: Company; Convertible Securities; Currency; Derivative Instruments; Investment Model; Liquidity; Market; Market Capitalization; Other Investment Companies; and Securities Lending risks.
1. Data as of 6/30/23.
Source: Morningstar as of 6/30/23. Holdings overlap based on Morningstar Common Holdings Score %. Global REITS represented by FTSE EPRA Nareit Global REITs NR USD. Energy MLPs represented by Alerian MLP TR USD. Down capture ratio calculated versus the MSCI World NR USD Index. Standard Deviation and Down Capture Ratio calculated over trailing 5-years through 12/31/22. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results.
Standard deviation measures how widely dispersed a fund's returns have been over a specified period of time. A high standard deviation indicates that the range is wide, implying greater potential for volatility.
The down-market capture ratio is a statistical measure of an investment manager's overall performance in down-markets. It is used to evaluate how well an investment manager performed relative to an index during periods when that index has dropped.