Build your portfolio -
with infrastructure funds
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
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.
1 Andrew Lupton, CBC News, "Ice storm fallout: Can't power lines go underground?" Jan. 9, 2014.
2 Transport Canada, "New Bridge for the St. Lawrence," March 3, 2014.
3 British Columbia Ministry of Transportation and Infrastructure, Revised 2013/14-2015/16 Service Plan.
4 Infrastructure Canada, The New Building Canada Plan, Feb. 27, 2014.
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
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
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.