Global
Infrastructure

A Broader, Disciplined Definition of Infrastructure, Not Driven by an Index

Strategy Objective

The strategy seeks to outperform the S&P Global Infrastructure Index over a full-market cycle.

Approach

Our use of a more comprehensive opportunity set, allows us to invest in companies that may fall outside the typical “pure-play” infrastructure style. This gives us the ability to take advantage of any economic and demographic trends, that in our view, benchmark constrained managers may not otherwise be afforded, given any potential constraints or limitations on their investment universe.

Our investment strategy focuses on companies with the following characteristics:

  • High-quality infrastructure & infrastructure-related companies that are likely to support above average levels of cash-flow growth
  • Organic volume growth opportunities driven by secular trends (e.g., urbanization, modernization, and asset revitalization)
  • Strategic assets that benefit from infrastructure bottlenecks
  • Improving fundamentals, which we believe are currently underappreciated by the market
  • Attractive valuation relative to intrinsic value
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Differentiating Characteristics

Our Definition of Infrastructure Is Disciplined, Yet Not Driven By an Index

  • We invest in companies that own, operate, build, and service infrastructure assets resulting in a more comprehensive opportunity set

Global, Diversified and Flexible Portfolio Construction

  • Our approach is designed to provide the potential for higher upside capture while still affording the potential to mitigate downside capture

In-Depth Specialization & Experience Across the Utilities Sector

  • Jennison has been a pioneer in utility investing with a history dating back to the 1970’s
  • We believe our experience investing across the entire energy value chain and our deep understanding of the utilities sector can provide a competitive advantage in building infrastructure portfolios
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Philosophy

The Global Infrastructure team believes that the enduring nature of global economic and demographic trends (e.g., urbanization, modernization, and asset revitalization), will drive persistent demand growth for infrastructure investments.

Additionally, we believe the market tends to underappreciate and/or misprice the growth potential of well-positioned infrastructure assets. As a result, this persistent growth when coupled with the fundamental characteristics of the asset class can create attractive total return opportunities within global listed infrastructure, in our view.

Key Characteristics

Benchmark: S&P Global Infrastructure Index
Number of Holdings Typically 55 – 75
Strategy Inception: July 2008
Market Cap: All-Cap
Turnover: 50 – 70% under normal market conditions

Investment Team

Our Global Infrastructure team is a part of Jennison’s Income & Infrastructure investment suite which also includes our Equity Income, MLP, Utility, and Rising Dividend strategies.

The investment teams’ extensive experience within the utility and telecommunication sectors, which have historically been two of the higher dividend-yielding sectors*, is complemented by our MLP / midstream energy infrastructure experience. In addition, the investment team leverages Jennison’s energy value chain research approach, which is comprised of specialized analysts that focus on those sectors/industries within the upstream, midstream, and downstream energy infrastructure space, including utilities and power generation companies.

Having invested in midstream infrastructure companies since the late 1990’s, the investment teams’ experience in analyzing operational, financial, and regulatory factors within the broad infrastructure universe is bolstered by our company and sector / industry expertise and contributes to our deep understanding of the landscape. We believe this can provide us a competitive advantage in constructing infrastructure-oriented portfolios on behalf of our clients.

 

*As of December 31, 2015

 

Meet the Team

Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors. The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.

Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.

Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Additional considerations:
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.
The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.
These materials do not purport to provide any legal, tax or accounting advice.