Northern Trust, a Nasdaq-listed investment manager based in Chicago, has launched a new listed infrastructure fund that will be sub-advised by Brookfield and Macquarie Capital.
The firm said the Northern Multi-Manager Global Listed Infrastructure Fund is being launched in response to investor demand for strategies that produce dividend yields as well as downside protection.
“Infrastructure – including airports, ports, toll roads and similar assets – has unique and attractive characteristics as an investment,” said Chris Vella, CIO of Northern Trust Multi-Manager Investments.
“We see this as a space that has the potential to provide relatively stable cash flows, attractive yields, inflation protection and downside protection.
“We also like that the companies this fund will invest in often have limited competition due to the high barriers of entry into the markets they serve.”
Northern’s Multi-Manager Global Listed Infrastructure Fund seeks total return through both income and capital appreciation.
Under its investment strategy, at least 80 per cent of assets will be invested in securities of infrastructure companies listed on a domestic or foreign exchange.
Infrastructure firms include energy, transportation, communication and utility companies.
The fund will invest at least 40 per cent in infrastructure companies tied to foreign countries, including emerging markets and frontier markets.
The fund’s total net operating expense ratio is 1.00 per cent, and has a redemption fee of two per cent on assets sold or exchanged within 30 days of purchase.
The minimum investment is $2,500.
The firm said the fund takes a multi-manager approach, with assets allocated to multiple outside sub-advisers using distinctive investment styles.
The Northern Trust Company of Connecticut (NTCC) will conduct manager research, selection, optimisation and oversight, it added.
Investment sub-advisers are Brookfield Investment Management and Macquarie Capital Investment Management.
Northern Trust launched its first multi-manager programme in 1979. As of June 30, 2012, the firm managed over $35.7bn assets in multi-manager programmes, in addition to assets under advisement of $23.2bn for institutional and personal clients.
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