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.
|MTD†||YTD %†||1 YR %||3 YR %||5 YR %||10 YR %||Inception %††|
|Cash And Cash Equivalents||6.41|
|Aes Corporation (The)|
|American Tower Corporation|
|Constellation Energy Corp|
|Crown Castle Inc|
|Quanta Services Inc.|
|Sba Communications Corp|
|Targa Resources Corp|
|Waste Connections Inc|
Hello, this is Jeff Sayer, and I am the Portfolio Manager of the Ninepoint Global Infrastructure Fund.
The infrastructure sector has historically outperformed other asset classes during periods of moderate inflation and slow growth, the environment where we find ourselves today. Because we see inflation remaining elevated and growth remaining below potential, possibly for the next few years, it is an ideal time to consider adding infrastructure investments to a well-diversified portfolio.
The Ninepoint Global Infrastructure Fund offers investors a combination of inflation protection and income generation with a low correlation to traditional equities and bonds. Through prior cycles, publicly listed infrastructure companies have shown the ability to grow dividends and net asset values above the rate of inflation, which is crucial to protecting an investor’s purchasing power. Also, certain infrastructure sub-sectors continue to offer relatively more attractive dividend yields than other potential sources of income, even after the move higher in the US 10-year bond yield. Further, we believe that the asset class is well supported by several recent catalysts, including the Bipartisan Infrastructure Bill, the Inflation Reduction Act, and the reopening of the global economy after the Covid-19 pandemic.
In terms of positioning, we have been focused on both the Energy sector (our largest relative overweight given its favorable valuation) and the Utilities sector (our largest absolute weight given its defensive characteristics). Philosophically, we are comfortable having exposure to both traditional energy investments (primarily through Oil & Gas Storge & Transportation assets) and renewable energy investments (including clean energy technologies) given the importance of sustainability and security of supply. Finally, the Ninepoint Global Infrastructure Fund is eligible for registered accounts and investors receive an annualized distribution of 4.5%, paid monthly but with an annual reset, which makes the Fund ideally suited for those who require steady, monthly income.
Thank you for your time and if you have any additional questions, please contact your Ninepoint salesperson.
Global Infrastructure Overview
|Fund Type||Global Equity|
|*Inception Date||Series A: September 20, 2011
Series F: September 1, 2011
|Registered Tax Plan Status||Eligible|
|Distributions||Target 4.5% per annum paid monthly††|
|Management Fee||Series A: 2.00%
Series F: 1.00%
|Min. Initial Investment||$500|
|Min. Subsequent Investment||$25|
|Min. Investment Term||20 days (1.5% penalty)|
†† Series A, D, F
*Formerly Exemplar Global Infrastructure Fund. Effective March 31, 2014, Sprott Asset Management LP became the successor manager to the fund. Subsequently, effective August 1, 2017, Ninepoint Partners LP became the manager of the Fund.
All returns and fund details are a) based on F units; b) net of fees; c) annualized if period is greater than one year; d) as at October 31, 2022; e) 2011 annual returns are from 09/01/11 to 12/31/11. The index is 100% MSCI World Core Infrastructure NR (CAD) and is computed by Ninepoint Partners LP based on publicly available index information.
The Fund is generally exposed to the following risks. See the prospectus of the Fund for a description of these risks: capital depletion risk; concentration risk; credit risk; currency risk; cybersecurity risk; derivatives risk; exchange traded funds risk; foreign investment risk; income trust risk; inflation risk; interest rate risk; liquidity risk; market risk; regulatory risk; series risk; short selling risk; small company risk; specific issuer risk; tax risk.
Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), other charges and expenses all may be associated with mutual fund investments. Please read the prospectus carefully before investing. The indicated rate of return for F units of the Fund for the period ended October 31, 2022 is based on the historical annual compounded total return including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.
The opinions, estimates and projections (“information”) contained within this report are solely those of Ninepoint Partners LP and are subject to change without notice. Ninepoint Partners makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Ninepoint Partners assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Ninepoint Partners is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Please contact your own personal advisor on your particular circumstances. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by Ninepoint Partners. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any investment fund managed by Ninepoint Partners is or will be invested. Ninepoint Partners LP and/or its affiliates may collectively beneficially own/control 1% or more of any class of the equity securities of the issuers mentioned in this report. Ninepoint Partners LP and/or its affiliates may hold short position in any class of the equity securities of the issuers mentioned in this report. During the preceding 12 months, Ninepoint Partners LP and/or its affiliates may have received remuneration other than normal course investment advisory or trade execution services from the issuers mentioned in this report.
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