Cantor Fitzgerald Infrastructure Fund Announces First Quarter 2024 Distribution
- None.
- None.
Insights
The recent distribution announcement by Cantor Fitzgerald Infrastructure Fund reflects a steady performance, with an increase in its quarterly distribution for the sixth consecutive time. An annualized distribution rate of 4.00% based on the average daily NAV per share is competitive within the infrastructure fund space. Investors typically look for consistency and growth in distributions as a sign of a fund's health and management's confidence in its cash flow.
It's important to note that while the fund is non-diversified under the 1940 Act, meaning it can allocate more assets to fewer issuers, it still aims to maintain a diversified exposure across various infrastructure sectors and geographies. This approach could mitigate sector-specific risks while still potentially concentrating on higher-yielding opportunities. However, investors should be aware that a non-diversified status can lead to higher volatility in the fund's net asset value.
The Fund's alignment with United Nations Sustainable Goals adds an attractive layer for investors interested in sustainable and responsible investing. By focusing on infrastructure sectors that contribute to these goals, the fund positions itself to potentially benefit from the increasing global focus on sustainability. The emphasis on digital transformation, energy transition and aging infrastructure enhancement aligns with current trends that are driving investment in these areas.
However, investors should be cautious and look beyond the marketing appeal of sustainability. They should evaluate the actual impact and performance of the investments within the fund's portfolio against the stated sustainability objectives. Transparency in how these goals are being met is critical for assessing the fund's true alignment with sustainable investment principles.
The distribution policy, particularly the aspect of return of capital, has tax implications for shareholders. Return of capital reduces the tax basis of the shares, which could result in a higher taxable gain upon their disposal. This is a key consideration for shareholders when evaluating the after-tax return of their investment.
Furthermore, the fund's notice that the level of quarterly distributions is not fixed and may change is significant. Investors should be aware that the fund's distributions could be affected by the performance of the underlying assets and a sustainable distribution rate is not guaranteed. It is also important for investors to understand the final determination of the source and tax characteristics of all distributions at the end of the year, as this will impact their individual tax situations.
The Fund is diversified2 geographically and across multiple infrastructure sectors, including electric utilities, independent power, renewable electric producers, water utilities, digital infrastructure, and various other infrastructure sectors.
The Fund's investment objective is to maximize total return, with an emphasis on current income, while seeking to invest in issuers that are helping to address certain United Nations Sustainable Goals through their products and services. The Fund pursues its investment objective by strategically investing in a portfolio of private institutional infrastructure investment funds as well as public infrastructure securities. The Fund's strategy is centered around three global megatrends expected to shape our future markets: (i) digital transformation, (ii) energy transition, and (iii) the enhancement of aging infrastructure.
1The Fund's distribution policy is to make quarterly distributions to shareholders. The level of quarterly distributions (including any return of capital) is not fixed, and this distribution policy is subject to change. Shareholders should not assume that the source of a distribution from the Fund is net profit. All or a portion of the distributions consist of a return of capital based on the character of the distributions received from the underlying holdings. The final determination of the source and tax characteristics of all distributions will be made after the end of each year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. There is no assurance that the Fund will continue to declare distributions or that they will continue at these rates. There can be no assurance that any investment will be effective in achieving the Fund's investment objectives, delivering positive returns, or avoiding losses.
2 For purposes of the Investment Company Act of 1940 (the "1940 Act"), the Fund is classified as a non-diversified fund, which means the Fund may invest more than
About Cantor Fitzgerald Infrastructure Fund
Cantor Fitzgerald Infrastructure Fund is a continuously offered, closed-end interval fund registered under the Investment Company Act of 1940 (the "1940 Act"). The Fund's investment objective is to maximize total return with an emphasis on current income while seeking to invest in issuers that are aligned with certain United Nations Sustainable Development Goals. To learn more, visit www.cantorinfrastructurefund.com.
About Cantor Fitzgerald Investment Advisors
The Fund's investment adviser is Cantor Fitzgerald Investment Advisors, L.P., an SEC registered investment advisor, a division of Cantor Fitzgerald Asset Management, and a wholly owned subsidiary of Cantor Fitzgerald, L.P. (together with affiliates, "Cantor Fitzgerald"). Founded in 1945 and now with over 12,000 employees, Cantor Fitzgerald is a global financial services firm with significant real estate, infrastructure, capital markets, research, and investment expertise providing investment management, asset management and advisory services to investors in global fixed income, equities, and real asset markets. For more information, visit www.cantor.com.
Investors should consider the investment objectives, risks, and charges and expenses of the Fund before investing. The prospectus contains this and other information about the Fund and should be read carefully before investing. The prospectus may be obtained by calling (855) 9-CANTOR / (855) 922-6087.
The Fund is distributed by Ultimus Fund Distributors, LLC. Ultimus Fund Distributors, LLC is not affiliated with Cantor Fitzgerald, L.P. or Capital Innovations, LLC.
Important Risk Information Investing in the Fund involves risk, including loss of principal. There is no guarantee that the Fund will meet its investment objective. There is no guarantee that any investing strategy will be successful. The Fund is suitable only for investors who can bear the risks associated with the limited liquidity of the Fund and should be viewed as a long-term investment.
The Fund will ordinarily declare and pay distributions from its net investment income, if any, once a quarter, and net realized capital gains annually; however, the amount of distributions that the Fund may pay, if any, is uncertain. The Fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the Fund's performance, such as a return of capital and borrowings.
The Fund intends to incorporate ESG investment insights into its portfolio construction process. The Fund may forego certain investment opportunities by screening out certain companies and industries. The Fund's results may be lower than other funds that do not apply certain exclusionary screens or use different ESG criteria to screen out certain companies or industries. The evaluation of ESG criteria is subjective and may change over time.
The Fund is subject to the risks associated with investment in infrastructure-related companies. Risks associated with infrastructure-related companies include: (a) realized revenue volume may be significantly lower than projected and/or there will be cost overruns; (b) infrastructure project sponsors will alter their terms making a project no longer economical; (c) macroeconomic factors such as low gross domestic product growth or high nominal interest rates will raise the average cost of infrastructure funding; (d) government regulation may affect rates charged to infrastructure customers; (e) government budgetary constraints will impact infrastructure projects; (f) special tariffs will be imposed; and (g) changes in tax laws, regulatory policies or accounting standards could be unfavorable. Other risks include environmental damage due to a company's operations or an accident, a natural disaster, changes in market sentiment towards infrastructure and terrorist acts. Any of these events could cause the value of the Fund's investments in infrastructure-related companies to decline.
By investing in the Fund, a shareholder will not be deemed to be an investor in any underlying fund and will not have the ability to exercise any rights attributable to an investor in any such underlying fund related to their investment. The Fund's investment in Private Investment Funds will require it to bear a pro rata share of the vehicles' expenses, including management and performance fees. When the Fund invests in the securities of other investment companies, it will indirectly bear its proportionate share of any management fees and other expenses paid by investment companies in which it invests, in addition to the management fees (and other expenses) paid by the Fund. Furthermore, Private Investment Funds and other underlying funds in which the Fund may invest, are subject to specific risks, depending on the nature of the vehicle, and also may employ leverage such that their returns are more than one times that of their benchmark, which could amplify losses suffered by the Fund when compared to unleveraged investments. Shareholders of the Private Investment Funds are not entitled to the protections of the Investment Company Act of 1940, as amended. These characteristics present additional risks for shareholders.
A more complete description of the risks of investing in the Fund can be found in the Fund's prospectus, which is available at www.cantorinfrastructurefund.com.
Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may, without the prior written consent of Cantor Fitzgerald, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient.
18007964-UFD 03/28/2024
View original content to download multimedia:https://www.prnewswire.com/news-releases/cantor-fitzgerald-infrastructure-fund-announces-first-quarter-2024-distribution-302105834.html
SOURCE Cantor Fitzgerald, L.P.
FAQ
What was the first-quarter distribution per Class A share announced by Cantor Fitzgerald Infrastructure Fund (CAFIX)?
What is the investment objective of Cantor Fitzgerald Infrastructure Fund (CAFIX)?
What are the three global megatrends shaping the strategy of Cantor Fitzgerald Infrastructure Fund (CAFIX)?
How is Cantor Fitzgerald Infrastructure Fund (CAFIX) classified under the Investment Company Act of 1940?
What is the significance of the Fund's diversification strategy?
