With their high returns and low correlations to other major indices over the past five years, investments in global infrastructure—toll roads, airports, utilities and the like—are attracting attention from financial advisors and new products from fund providers.  But will such impressive performance continue? And, if you buy the case for this kind of investing, how should you evaluate the funds vying for your attention?

The Case for Global Infrastructure Investing

“You can get attractive returns without adding volatility to a portfolio.” That’s how Jay Rosenberg, lead manager of First American’s Global Infrastructure Fund, sums up the appeal of global infrastructure investing. The historical data support Rosenberg’s assertion. Global infrastructure’s returns, as represented by the S&P Global Infrastructure Index, have outdistanced those of the major asset classes for the past three-year and five-year periods, according to First American Funds.

Source: First American Funds, based on data from Morningstar

The index is also largely uncorrelated to major U.S. and global asset classes.

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