The guiding philosophy in our Global Infrastructure strategy is intensive fundamental analysis, a natural outgrowth of our founding in 1932 as a fundamental research firm analyzing the utility sector. We believe this is instrumental in identifying securities in the utility, telecommunications, energy and transportation sectors that are mispriced, helping us in our quest to deliver superior risk-adjusted returns. Our focus is on the owners and operators of infrastructure assets because they have provided attractive cash flows, growing dividends and inflation-linked revenues. The near monopolistic nature of many of our essential services holdings may offer a defensive buffer to the volatility experienced in other sectors of the market. Two senior team members have extensive work experience at regulated utilities, while the entire team has a deep understanding of the complex regulatory component of the market, which can help in their assessment of a company’s intrinsic value. In addition, our collaborative approach seeks to draw input from all members of the infrastructure team, leading to a constant checking and re-checking of our investment thesis and assumptions. In the most recent period of sustained rising interest rates, global infrastructure outperformed the broad equity market. We believe global infrastructure can be an integral part of a well-diversified portfolio.
The Federal Reserve Bank began raising the federal funds rate in June 2004 from 1% and continued raising the rate through June 2006 to 5.25%. The federal funds rate remained at 5.25% through August 2007.
As measured by the MSCI World Infrastructure Sector Capped Index versus the S&P 500 Index. Returns were calculated in U.S. dollars and include the reinvestment of income. In addition to the utility, telecommunications, energy and transportation sectors, the MSCI World Infrastructure Sector Capped index includes the social services sector (5.3% of the index as of December 31, 2015). Due to differing investment characteristics, Duff & Phelps does not intend to invest in this sector. Indices are unmanaged and not available for direct investment. Past performance is not indicative of future results.
Our strategies are designed to deliver on their goals. We designed our investment strategies to meet the needs of different investors. As one of the investment managers within the Virtus Investment Partners network, our strategies are offered to indviduals in the retail market via open-end mutual funds. For many investors, mutual funds offer a great balance between professional money management and ease of use.
For information regarding open end mutual funds utilizing Duff & Phelps strategies, please visit the Virtus Website.
This information does not represent an offer, or the solicitation of an offer, to buy or sell securities of the Funds.
- Fact Sheet