NEW YORK, July 29, 2024 /PRNewswire/ — Cantor Fitzgerald Asset Management today announced the Cantor Fitzgerald Infrastructure Fund (the “Fund”), the first ’40 Act fund primarily focused on providing access to private infrastructure, surpassed $150 million in total net assets since its launch in June 2022.
The Fund began trading on Nasdaq under the ticker symbol CAFIX and has since added multiple share classes (Nasdaq: CFIIX, CFCIX, and CFISX) to support the needs of a diversified1 client base. The portfolio consists of private and public infrastructure assets, both debt and equity, through a ’40 Act interval fund structure with a daily valuation and quarterly liquidity.2 As of June 30, 2024, the Fund’s Class I Shares (Nasdaq: CFIIX), primarily used in advisory and institutional accounts and representing 85% of the Fund’s assets, delivered a 13.73% annualized return since inception.3, 4 This compares favorably to the S&P Global Infrastructure Index, the Fund’s benchmark, which returned 7.02% (without deduction for fees, expenses, or taxes) over the same period.
The Fund also increased distributions to shareholders in six consecutive quarters – from the fourth quarter of 2022 through the first quarter of 2024. As of the second quarter of 2024, the annualized distribution rate, based on the daily NAV/share, was 4.00%5 and the Fund’s distribution rate since inception was 4.60%. 4, 5, 6
“We have seen strong investor interest in the Fund as demand for private infrastructure continues to grow,” said Bill Ferri, Global Head of Cantor Fitzgerald Asset Management. “Institutional investors are increasingly drawn to the sector because of its many potential benefits, including attractive returns, stable cash flows, low correlation to other asset classes, and potential inflation protection. We believe this trend will continue and anticipate private wealth clients will increase their allocations to infrastructure for the same reasons.”
“Over the past two years, the Fund’s portfolio management team has actively invested in publicly traded infrastructure holdings and, in the last nine months alone, has added or committed to nine private infrastructure investments, including primaries, secondaries, and co-investments across private equity and debt,” said Michael Underhill, Portfolio Manager of the Fund and Founder and CIO of Capital Innovations, LLC, the Fund’s sub-advisor. “We continue to identify attractive opportunities that align with our investment objective and believe the Fund is well-positioned to benefit from the current inflationary market.”
The Fund’s investment program focuses on three infrastructure megatrends: digital transformation, energy transition, and the enhancement of aging infrastructure. The Fund is diversified geographically and across multiple infrastructure sectors, including electric utilities, independent power, renewable electric producers, water utilities, digital infrastructure, and various other infrastructure sectors.6 The investment objective is to maximize total return, with an emphasis on current income.
The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free (855) 922-6867.
1 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 5% of its total assets in the securities of one or more issuers. However, among the issuers in which the Fund invests, the Fund intends to seek exposure across multiple infrastructure sectors (e.g., renewables, communications, and transportation), managers, and geographic locations. As used herein, the terms “diversify,” “diversified,” and “diversification” are meant to reference the type of diversification referenced in the foregoing sentence and not the Fund’s diversification status under the 1940 Act. Accordingly, changes in the financial condition or market value of a single issuer may cause a greater fluctuation in the Fund’s net asset value than in a 1940 Act diversified fund. The Fund is not intended to be a complete investment program.
2 No secondary market is expected to develop for the Fund’s shares. Liquidity for the Fund’s shares will be provided only through quarterly repurchase offers for no less than 5% of the Fund’s shares at net asset value, and there is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in the repurchase offer. Due to these restrictions, an investor should consider an investment in the Fund to be of limited liquidity.
3 The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted above. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Fund performance is based on Class I shares and does not reflect any sales charge but does reflect management fees and other expenses. Fee waivers and expense reimbursements have positively impacted the Fund’s performance. The Fund offers multiple different classes of shares. An investment in any share class of the Fund represents an investment in the same assets of the Fund. However, the purchase restrictions, ongoing fees, expenses, and performance for each share class are different. For more information on the differences in share classes, refer to the applicable prospectus, which can be found at: www.cantorinfrastructurefund.com. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. For current performance information, visit www.cantorinfrastructurefund.com.
4 The total annual fund operating expense ratio, gross of any fee waivers or expense reimbursements for Class I is 10.87%. The Adviser and the Fund have entered into an expense limitation and reimbursement agreement (the “Expense Limitation Agreement”) under which the Adviser has contractually agreed to waive its fees and to pay or absorb the ordinary operating expenses of the Fund (including all organizational and offering expenses, but excluding interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses), to the extent that such expenses exceed 2.25% per annum of the Fund’s average daily net assets attributable to Class I shares (the “Expense Limitation”). The Expense Limitation Agreement will remain in effect at least until July 31, 2025, unless and until the Board approves its modification or termination.
5 The 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. The Fund accrues distributions daily. The current distribution rate is calculated by annualizing the daily accrual rate of the Fund as of the date listed. The Fund’s distribution policy is to make quarterly distributions to its shareholders, but the amount of such distributions is not fixed. A portion of the distributions since inception has included a return of capital (non-dividend distributions) based on the character of the distributions received from the underlying holdings and may do so in the future. Please refer to the Fund’s most recent Section 19(a) notice for an estimate of the composition of the Fund’s most recent distribution, available at www.cantorinfrastructurefund.com/literature. The actual components of the Fund’s distributions for U.S. tax reporting purposes can only be determined as of the end of each calendar year and will be reported on Form 1099-DIV. A distribution comprised in whole or in part by a return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with yield, income, or net profit.
6 The Fund’s inception date was June 30, 2022, and its initial net asset value was $10.00.
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 adviser, 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 12,500 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.
About Capital Innovations, LLC
A leading global alternative investment manager offering clients private investment solutions across the infrastructure, real estate and natural resources asset classes. Our global private markets real assets platform is engineered by experts in combination with the best talent found around the world, utilizing both quantitative and fundamental process to substantiate our human decision-making in the investment selection process. Capital Innovations quantitative approach to private markets infrastructure, natural resources and real estate investments has delivered innovative, risk-managed investment solutions to investors worldwide since 2007. We work with our clients to conceive, structure, build out, manage, and monitor portfolios of private markets funds and direct investments (direct participations and co-investments), as we help them access a diversified set of investment opportunities worldwide. For more information, visit www.capinnovations.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.