Prospects for Infrastructure Assets Seen Due to Increasing Global Demand
NEW YORK, March 30, 2015 /PRNewswire/ -- The Dreyfus Corporation, the mutual fund arm of BNY Mellon Investment Management, and CenterSquare Investment Management have launched the Dreyfus Global Infrastructure Fund which provides individual investors with the opportunity to invest in the growth potential of infrastructure assets that connect people, resources, trade, goods and services and information around the world.
With developed nations looking to improve or replace aging infrastructure assets, and many emerging markets countries building out their infrastructure to grow their economies, the World Economic Forum estimates that $100 trillion will be invested in global infrastructure between 2010 and 20301. Traditionally, most infrastructure projects have been financed by the public sector. However, with public debt historically high versus GDP, more private capital will be required to fund future investment, giving investors increasing opportunities to benefit from an infrastructure allocation in their portfolios.
CenterSquare Investment Management, the sub-adviser for the fund, is a BNY Mellon Investment Management boutique specializing in real asset investing. CenterSquare cites a number of factors driving the need for infrastructure investment globally, including new sources of renewable energy, the discovery and utilization of new oil and gas deposits, and technological advances in communications, among others. Underpinning the demand for these assets is a growing and increasingly urban population and an expanding middle class, adding more consumers and increasing world trade.
Todd Briddell, chief executive officer and chief investment officer for CenterSquare, said, "We expect that there will be tremendous global demand for infrastructure assets over the next few decades. Companies that build and operate infrastructure assets are likely to see a significant benefit from the economic and secular trends to rehabilitate aging infrastructure and create new infrastructure to meet growing demand. As a result, listed infrastructure companies will increasingly take on a more significant role in the development and ownership of these assets."
Briddell added, "Our investment focus will be on companies managing real assets with strong cash flow visibility, low direct commodity exposure, long duration contracts, and a steady long-term demand outlook. The Dreyfus Global Infrastructure Fund will give investors exposure to this dynamic and expanding sector, while seeking to provide a growth alternative which may complement other equity asset classes."
Managing an infrastructure strategy is a natural extension of CenterSquare's expertise in listed real estate and real assets, said Briddell, who added, "As in listed real estate, the return and risk characteristics of global infrastructure securities are based on the underlying real assets."
The launch of the Dreyfus Global Infrastructure Fund follows the December 2014 launch of CenterSquare's infrastructure strategy for institutional investors.
The primary portfolio managers for the fund are Maneesh Chhabria, who was instrumental in the development of CenterSquare's global real estate investment trust (REIT) platform in 2006, and Joshua B. Kohn, a real assets investment specialist with more than 13 years of investment experience.
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. To obtain a prospectus, or a summary prospectus, if available, that contains this and other information about a Dreyfus fund, contact your financial advisor or visit dreyfus.com. Read the prospectus carefully before investing.
CenterSquare was founded in 1987 and offers a variety of real asset strategies and products. CenterSquare manages approximately $7.5 billion in public real estate and infrastructure securities through CenterSquare Investment Management, Inc. and approximately $1.6 billion (gross) in debt and private equity real estate investments through CenterSquare Investment Management Holdings, Inc. (together referred to as "CenterSquare"), as of December 31, 2014. It manages investments for institutional investors and high net worth individuals throughout global markets and across public and private capital sectors. It is one of the investment boutiques of BNY Mellon Investment Management.
The Dreyfus Corporation, established in 1951 and headquartered in New York City, is one of the nation's leading asset management and distribution companies currently managing more than $270 billion in mutual funds and other cash management vehicles. MSBC Securities Corporation is a Dreyfus subsidiary.
About BNY Mellon
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.7 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Dec. 31, 2014, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.
All information source BNY Mellon as of December 31, 2014. This press release is qualified for issuance in the US only and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Investment Management to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. A BNY Mellon Company.
Asset allocation and diversification cannot guarantee a profit or protect against loss.
Equity funds are subject generally to market, market sector, market liquidity, issuer, and investment style risks, among other factors, to varying degrees. Investing internationally involves special risks, including changes in currency exchange rates, political, economic and social instability, a lack of comprehensive company information, differing auditing and legal standards and less market liquidity.
These risks are generally greater with emerging market countries than with more economically and politically established foreign countries. Companies engaged in infrastructure related businesses and projects may be subject to a variety of factors that may adversely affect their development, including (but not limited to): high amounts of leverage and high interest costs in connection with capital construction and improvement programs; difficulty in raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets; and costs associated with compliance with and changes in environmental and other regulations.
Funds that focus on a single sector or asset class may have greater adverse exposure to factors affecting related businesses and may experience higher volatility than funds that have more diversified portfolios. Equity REITs may be affected by changes in the value of the underlying property owned by the trust, while mortgage REITs may be affected by the quality of any credit extended. Further, REITs are highly dependent upon management skill and often are not diversified. REITs also are subject to heavy cash flow dependency and to defaults by borrowers or lessees.
Dreyfus Corporation is the Fund's investment advisor. MBSC Securities Corporation, distributor
1 World Economic Forum, Accelerating Infrastructure Delivery, May 16, 2014
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SOURCE BNY Mellon