Insights

Portfolio Manager Eric Bright discusses the positive year-to-date performance on global infrastructure companies, where the portfolio is currently invested, and the importance of repowering renewable energy projects.

What is driving the positive performance in global infrastructure companies year-to-date through April?

With the tariff discussions, the S&P 500 has fallen approximately 5% in 2025 through April. Yet global infrastructure stocks, as measured by the S&P Global Infrastructure Index, have increased over 8% over the same time.

In this uncertain environment the essential services and durability of cash flows with fixed long-term leases make infrastructure investments desirable. We believe real assets offer:

• Durability of Cash Flow: The Fund’s holdings are not generally reliant on cross-border trade. The underlying assets owned by the portfolio companies are long-term oriented, often government contracted, inflation-linked real assets with an earnings profile that can be less volatile than other equities.
• Lower Correlations: Real assets tend to have a lower correlation to the overall market. Since inception in January 2023 through April 2025, the Cromwell Foresight Global Infrastructure Fund had a low correlation to the overall U.S. and global market.
• Attractive Valuations: Many infrastructure companies, particularly renewable energy and tower companies, appear to be out of favor given the recent sentiment around interest rates.

Finally, we believe investors are exploring areas of the market, including infrastructure assets, that may not be as affected by tariffs as other areas.

In what areas of infrastructure is the Fund currently invested?

The Fund has been focused on infrastructure companies with the management skillset and capital to capitalize on long-term trends and tailwinds. Since inception in 2023, the Fund has focused on

1. Core and social infrastructure. The need to promote economic growth, improve quality of life for citizens, and address societal challenges such as population growth, requires more investment in roads, schools and healthcare.
2. Digital infrastructure. 5G, WFH, cloud computing and artificial intelligence (AI) require denser networks of cell towers, fiber networks and data centers.
3. Clean energy. The need to decarbonize, electrify processes and improve the security of energy sources all require greater generation from renewables and improved distribution.

Beyond these areas of interest, the Fund has increased its exposure to Electric Utilities and Transportation companies, driven by strong fundamentals and a valuation opportunity. As of March 31, 2025, the Fund had a 6.5% weighting in Electrical Utilities and a 5.4% weighting in Transportation.

Would you please discuss recent merger and acquisition (M&A) activity in listed infrastructure and how this has benefitted Fund performance?

M&A activity was a key driver of listed infrastructure performance this quarter, as institutional investors moved to capitalize on the persistent discount between public market valuations and private asset pricing. This trend directly benefited the Fund, with two holdings—Innergex and Assura—subject to notable takeover activity.

Innergex, a Canadian renewable energy producer (4% of the portfolio), was acquired by CDPQ at approximately $10 per share—a 58% premium to its last close and 80% above the 30-day average price. This deal materially increased Fund performance and validated the Fund’s thesis that listed renewables remain significantly undervalued. It also triggered a rally in sector peers, with Boralex and Northland Power immediately rising 10% and 9%, respectively.

Assura, a U.K. healthcare REIT, received a revised offer from KKR and Stonepeak at 66 cents per share, representing a 30%+ premium and a valuation slightly above net asset value. The offer has been recommended by Assura’s Board, and a competing bid from listed REIT Primary Health Properties highlights the strategic value of healthcare assets in a consolidating market.

These developments underscore the deep value within listed infrastructure and the ability of M&A activity to unlock it. For the Fund, they contributed positively to performance while reinforcing conviction in our long-term, valuation-led approach—particularly as macro conditions begin to stabilize.