Why invest in infrastructure equity?
Without infrastructure, the day-to-day world we take for granted would not exist. Coupled with that, it is likely that economies would no longer function properly. Essentially, these assets make our lives liveable
Infrastructure-related companies are known as being ‘defensive’. In other words, it is likely that they continue to generate profits in good times and bad because many infrastructure companies have long-term contracts with governments. A steady cash flow means that infrastructure companies could potentially pay regular dividends to shareholders, which, in turn, generates an income for our investors.
Besides, the global population is growing. It is expected that there will be billions of people demanding multiple services.
With so many infrastructure options to choose from, we have decided to concentrate on specific themes that could potentially offer the most attractive long-term investment opportunities.
Why BNY Mellon Global Infrastructure Income Fund?
The Fund focuses on sustainable cash flow with a concentrated portfolio of between 20 and 40 stocks.
The factors that underpin our investment approach
Combining yield and growth
Benefiting from a broader opportunity set of infrastructure related assets
The Fund’s managers can choose from a wide range of companies, large or small, including those in non-traditional infrastructure sectors alongside more traditional businesses.
* S&P Global Infrastructure Index
Strengths of our fund manager
Our managers have multi-year of experience, deep understanding of the market, and a thorough research process, meaning they can invest with confidence in companies of any size and across a wide range of locations.
The Fund isn’t ‘traded’. Rather, our managers prefer ‘buy and hold’ with the future in mind. As a result, it is well positioned to capture future growth created by innovation, technological disruption, and emerging trends.
About the Fund
Investment objective: To maximise total returns from income and capital growth by gaining exposure to companies located worldwide that are engaged in infrastructure and related operations.
Available share classes
- The Fund primarily invests in equity securities issued by companies engaged in infrastructure and related operations globally.
- The Fund investment portfolio may fall in value and there is no guarantee of the repayment of principal.
- The Fund is concentrated in a limited number of infrastructure companies that may be more susceptible to adverse economic, political or regulatory occurrences affecting their industries. These may add additional costs, affect the competition and business environment of these companies.
- The Fund invests globally, including emerging markets. Due to less developed market infrastructures, emerging markets may subject to risks of (i) social, political and economic instability; (ii) lack of liquidity; (iii) higher price volatility; (iv) national policies restrictions; (v) less developed legal structures; (vi) currency risks/control, settlement risks and custody risks.
- The Fund may pay dividend effectively out of capital which amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of Net Asset Value per share.
- The Fund may invest in derivatives that are volatile, involve special risks such as risk of disproportionate loss due to leverage, counterparty/credit risk, liquidity risk and valuation risks.
- Investors should not rely solely on this document to make investment decision. Please read the offering documents carefully for further details, including risk factors.
The Fund transitioned investment manager from Mellon Investments Corporation, LLC to Newton Investment
Management North America LLC on 1st September 2021.
This Fund is a sub-fund under BNY Mellon Global Funds, plc (the “Responsible Person”), which is an open-ended umbrella investment company with variable capital incorporated in Ireland with segregated liability between subfunds and authorised by the Central Bank of Ireland. The Fund is recognised for retail distribution in Singapore under Section 287 of the Securities and Futures Act 2001 of Singapore. The Responsible Person has appointed BNY Mellon Investment Management Singapore Pte. Limited (“BNYM-IM-SG”) as its Singapore Representative.
The prospectus in relation to the Fund is available and a copy of it may be obtained from https://www.bnymellonim.com/sg/en/individual/funds-centre/ or at BNYM-IM-SG’s distributors. A potential investor should read the prospectus before deciding whether to subscribe or purchase units in the Fund. The value of the units in the Fund and the income accruing to the units, if any, may fall or rise. The net asset value of the Fund is likely to have a high volatility due to its investment policies or portfolio management techniques.
This document shall be used in Singapore only and shall not be used for the purpose of an offer or solicitation in any other jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorised. All information herein is made for information purposes only and subject to change at any time without notice, and should not be construed as investment advice or recommendation. Investors should seek relevant professional/financial advice before investing in the Fund and should read this document in conjunction with the prospectus of the Fund. The Responsible Person, BNYM–IM-SG and its affiliates are not responsible for any advice given to investors. Investments involve risks.
A complete description of risk factors is set out in the Prospectus. Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed. The Fund may invest in financial derivatives. When you sell your investment you may get back less than you originally invested. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. Issued by BNYM-IM-SG (Co. Reg. No. 201230427E). Issued on 10 September 2021