Diversifying with listed infrastructure3:19View transcript
Offers exposure to the global infrastructure market, emphasizing research-driven stock selection as the primary driver of excess returns.
Defensive portfolio construction
Seeking risk-adjusted excess returns primarily from stock selection—adopting explicit active weight guidelines, limiting factor/style tilts, and having equal weight bias in position sizing.
Differentiated approach to ESG and sustainability
Proprietary ESG ratings and Sustainable Development Goals alignment frameworks with emphasis on engagement and driving real world outcomes.
Disciplined stock selection process
Focused on companies of above average quality, trading at compelling relative valuations.
Leveraging time-tested investment philosophies and experienced oversight
Our core investment philosophies are consistent with our REITs strategy in place since 1998 and Kelly Rush, CEO of Listed Real Assets, provides executive level oversight of the listed infrastructure strategy.
Manager
Principal Real Estate
Inception
1 August 2019
Index
FTSE Global Core Infrastructure 50/50 Index
Targeted number of holdings
35-45
Expected turnover
< 50%
Investment vehicles
IMA, UCITS Fund, Mutual Fund
Long-term secular themes such as decarbonization, demographic, and digitalization trends are driving opportunity and demand for infrastructure investment.
Provides multiple diversification benefits to a portfolio, such as liquid access to real assets, country and sector diversification, durable and growing income potential, and lower beta versus general equities.
Offers targeted exposure to ESG and sustainability leaders and may support positive sustainability outcomes for investors.
Opportunity for compelling risk-adjusted returns with potential for inflation mitigation.
Complementary to an institutional portfolio’s private infrastructure allocation, with potential to complete a portfolio, preserve liquidity, gain immediate exposure, access tactical opportunities, and/or stay on top of trends.
Our experienced investment teams provide comprehensive, specialized, and sustainable capabilities across all four quadrants of commercial real estate—public equity, private equity, public debt, and private debt—and more recently, infrastructure investing. Whatever real estate strategy or combination of strategies you believe is right for your objectives, we can help.
No information
Footnotes
Past performance does not guarantee future results. Asset allocation and diversification do not ensure a profit or protect against a loss.
Equity markets are subject to many factors, including economic conditions, government regulations, market sentiment, local and international political events, and environmental and technological issues that may impact return and volatility.
Infrastructure issuers may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, operational or other mishaps, tariffs, and changes in tax laws, regulatory policies, and accounting standards. Foreign securities involve special risks, including currency fluctuation and lower liquidity. Some global securities may represent small and medium-sized companies, which may be more susceptible to price volatility than larger companies.
ESG integration is considered across all actively managed asset classes, with the approach determined by each investment group’s process. This information is specific to the strategies managed by the individuals providing this content and various investment teams across Principal may have differing views of this approach.
ESG criteria may present additional advantages or risks and does not protect against market risks or volatility. You should not make any investment assumptions based solely on the information contained herein. There is no assurance that any ESG component in our investing strategy will be successful.
Not all investment options are available in all jurisdictions. Certain vehicles have not been registered with the United States Securities and Exchange Commission under the United States Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States or to any United States person.
Principal Real Estate is a trade name of Principal Real Estate Investors, LLC, an affiliate of Principal Global Investors.