Strategy differentiators
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.
Disciplined stock selection process
Focused on companies of above average quality, trading at compelling relative valuations.
Differentiated approach to ESG and sustainability
Proprietary ESG ratings and Sustainable Development Goals alignment frameworks with emphasis on engagement and driving real world outcomes.
Dedicated sector specialist investment team
Team has complementary experiences investing in infrastructure, analyzing ESG and sustainability, and benefits from a commitment from Principal to scale the capability.
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.
Strategy differentiators
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
The opportunity for investors
Long-term secular themes such as decarbonization, demographic, and digitalization trends are driving opportunity and demand for infrastructure investment.
Opportunity for compelling risk-adjusted returns with potential for inflation mitigation.1
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.
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.
Offers targeted exposure to ESG and sustainability leaders and may support positive sustainability outcomes for investors.
Diversifying with listed infrastructure
Allocate capital at the intersection of social, environmental, and economic progress.
Portfolio management
Principal Real Estate
Our dedicated listed infrastructure investment team within Principal Real Estate brings a wealth of complementary experience investing in infrastructure and broader public equity markets around the world.
Portfolio Manager, Head of Listed Infrastructure
Emily Foshag, CFA
14 years of experience
Portfolio Manager
Alex Mottershead, CFA
29 years of experience
Senior Analyst
Rishika Davda, CFA
13 years of experience
Senior Analyst
Bing Han, CFA
13 years of experience
Research Associate
Carlos Vasquez-Velasco
1 year of experience
1 Source: FactSet, U.S. Bureau of Labor Statistics, CPI ex-food and energy as of 31 December 2022. Listed infrastructure (represented by the MSCI ACWI Utilities Index from 2003 through 2006, a 50/50 blend of MSCI ACWI Utilities Index and the Alerian MLP Index from 2007 through 2015, and the FTSE Global Core Infrastructure 50/50 Index thereafter) delivered average returns of 12.5% in periods of above median U.S. inflation vs. 7.0% delivered by global equities (represented by MSCI All Country World Index).
Past performance does not guarantee future results.
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.
Investment guidelines are subject to change. The FTSE Global Core Infrastructure 50/50 Index includes the listed stocks of companies that meet FTSE Russell’s definition of core infrastructure. To be included in the index, companies must derive a minimum of 65% of their revenue from FTSE Russell-defined core infrastructure activities.
Principal Real Estate is a trade name of Principal Real Estate Investors, LLC, an affiliate of Principal Global Investors.