With infrastructure funds, skilled teams of researchers do the drilling to identify the projects and companies with the most potential and the best chance of meeting the fund's investment objectives.

Broad range of investments
The specific investments an infrastructure fund might hold are drawn from the businesses and industries involved in building, servicing, or developing infrastructure projects. These can include everything from pipelines and wind farms to real estate to companies that administer bridge and highway tolls and long-term care homes. Some funds may focus on specific areas, while others may have a broader scope.

Depending on the fund's mandate and its holdings, returns can come from growth of the securities themselves, from the income the holdings generate, or a combination of the two. Some also include exposure to relevant international companies. In economies such as Brazil, where there is widespread privatization of government-controlled infrastructure, the growth potential can be significant.

We can help you decide if one of these funds would be a good addition to your asset mix, and, if so, how to best dovetail it into the rest of your portfolio.

The extreme weather experienced by much of the country over this past winter has drawn attention to Canada's aging infrastructure. From power lines to potholes, major infrastructure spending is planned or under way and shows no signs of abating.

Toronto, for example, is considering a $15-billion project to bury its power lines to shield them from catastrophic ice and winds.1 In light of ongoing issues with the Champlain Bridge (one of Canada's busiest), Montreal is fast-tracking construction of its $5-billion replacement to 2018 from 2021.2 In B.C., the $25-billion Pacific Gateway Project is expanding the province's road, rail, and port capacity to better transport its resources.3 On a national scale, the federal government recently announced the "New Building Canada Plan" a $70-billion, 10-year infrastructure spending spree.4 What do these projects mean for investors? In a word: opportunity.

Extreme makeover needed
Most of Canada's core infrastructure was built in the post-war '50s and '60s. Our collective focus (and public spending) then shifted toward social services, healthcare, and education. But this past winter has drawn attention to the almost desperate condition of infrastructure across the country.

While we all benefit as Canadian residents from improvements to our communities, we can also benefit as investors. Infrastructure projects generate jobs, stimulate economic growth, and present growth opportunities for businesses related to construction and their spinoffs.

For those with the appropriate investor profile, mutual funds that focus on infrastructure provide an efficient way to capitalize on these opportunities. As always, one of the key benefits with mutual funds is the ability to let professionals do the legwork.

Bridging the infrastructure gap

Across the nation, governments at all levels are undertaking significant construction projects.

Source: ReNew Canada magazine, "Top 100 - Canada's Biggest Infrastructure Projects," 2014.

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