Global Infrastructure Securities Strategy
Global Infrastructure Securities Strategy

Global Infrastructure Securities Strategy

 
 
 
Summary

The Morgan Stanley Global Infrastructure Strategy seeks attractive long-term, risk-adjusted returns by investing in the equity securities of publicly traded infrastructure companies worldwide. The investment team utilizes proprietary research to drive a value-oriented, fundamental investment process that combines bottom-up and top-down analyses.

 
 
Investment Approach
Philosophy

The Global Listed Real Assets team believes that the performance of infrastructure securities is most highly correlated with the underlying value of their assets. In aiming to achieve core infrastructure exposure in a cost-effective manner, the team utilizes proprietary research to invest in the equity securities of publicly listed infrastructure companies that it views as offering the best value relative to their underlying assets and growth prospects.

 
Differentiators
BEYOND ASSET FOCUS

The team is biased towards those companies that can maintain a stable cash flow profile over time through high barriers to entry.

SECULAR vs. CYCLICAL BIAS

The team remains committed to its investment philosophy irrespective of short term trends, and pursues a disciplined, value-oriented investment process that utilizes proprietary research, which is designed to identify stocks that trade at discounts to underlying infrastructure value.

APPROACH

Focus on total return with less emphasis on income/dividend yield. Long-term investment approach has resulted in low portfolio turnover and helps limit trading costs.

EXPERIENCED INVESTMENT TEAM

The portfolio managers possess more than 45 years of combined experience. The team also leverages its real estate experience in managing the Global Infrastructure Strategy and has implemented a similar investment philosophy and process to the strategy it has been utilizing for Real Estate Securities since 1995, as the team believes the analysis of both public real estate and infrastructure companies share many common characteristics.

 
 
 
Investment Process
Bottom-up and top-down research helps identify attractive infrastructure securities globally
 
 
Portfolio Managers
Head of Global Listed Real Assets Investing
31 years industry experience
Managing Director
18 years industry experience
 
 
 
 

RISK CONSIDERATIONS  

Diversification does not protect you against a loss in a particular market; however it allows you to spread that risk across various asset classes.

There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline. Accordingly, you can lose money investing in this strategy. Please be aware that this strategy may be subject to certain additional risks. Companies within the infrastructure industry are subject to a variety of factors that may adversely affect their business or operations, including high interest, leverage and regulatory costs, difficulty raising capital, the effect of an economic slowdown or recession and surplus capacity, and increased competition. Other risks include technological innovation, significant changes in the number of end-users, an increasing deregulatory environment, natural and environmental risks, and terrorist attacks. In general, equity securities values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, and market risks. Investments in small- and medium-capitalization companies tend to be more volatile and less liquid than those of larger, more established, companies. The risks of investing in emerging market countries are greater than risks associated with investments in foreign developed markets. Non-diversified portfolios often invest in a more limited number of issuers. As such, changes in the financial condition or market value of a single issuer may cause greater volatility. Illiquid securities may be more difficult to sell and value than publicly traded securities (liquidity risk).

 

This communication is only intended for and will be only distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations.

There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. Past performance is no guarantee of future results.

A separately managed account may not be suitable for all investors. Separate accounts managed according to the Strategy include a number of securities and will not necessarily track the performance of any index. Please consider the investment objectives, risks and fees of the Strategy carefully before investing. A minimum asset level is required. For important information about the investment manager, please refer to Form ADV Part 2.

Any views and opinions provided are those of the portfolio management team and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring. The views expressed do not reflect the opinions of all portfolio managers at Morgan Stanley Investment Management (MSIM) or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

All information provided has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.

DEFINITIONS

Net asset value (NAV) represents the underlying asset value of a company.

OTHER CONSIDERATIONS

The indexes are unmanaged and do not include any expenses, fees or sales charges. It is not possible to invest directly in an index. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto.

The Dow Jones Brookfield Global Infrastructure Index is a float-adjusted market capitalization weighted index that measures the stock performance of companies worldwide that exhibit strong infrastructure characteristics. The Index intends to measure all sectors of the infrastructure market. The index is unmanaged and should not be considered an investment. It is not possible to invest directly in an index.

The information presented represents how the portfolio management team generally implements its investment process under normal market conditions.

Morgan Stanley Investment Management is the asset management division of Morgan Stanley.  

 

It is important that users read the Terms of Use before proceeding as it explains certain legal and regulatory restrictions applicable to the dissemination of information pertaining to Morgan Stanley Investment Management's investment products.

The services described on this website may not be available in all jurisdictions or to all persons. For further details, please see our Terms of Use.

Not FDIC Insured—Offer No Bank Guarantee—May Lose Value
Not Insured By Any Federal Government Agency—Not A Deposit

Privacy & Cookies    •    Terms of Use

©  Morgan Stanley. All rights reserved.

Morgan Stanley Distribution, Inc. Member FINRA/SIPC.