U.S. Infrastructure Portfolio
Infrastructure is the framework upon which our quality of life rests and aids in the economic growth and development of our nation. Infrastructure assets help provide essential products and services such as water and wastewater systems, roads, railways, airports, utilities, hospitals, schools and communications systems. Emerging countries understand that infrastructure is vital to their economic development and growth. However, infrastructure must be maintained and improved even in developed countries. The United States, for example, has an aging infrastructure requiring badly needed repairs, upgrades and additions. The U.S. Infrastructure Portfolio invests in companies that offer products and services used in the development and maintenance of the nation's infrastructure and typically benefit from economic growth.
The Aging of America
Infrastructure funding gaps in the U.S. are enormous. Total spending needs may be as high as $3.6 trillion by 2020. America's aging infrastructure also comes with costs in terms of economic growth if investments aren't made.
- Some water, wastewater and storm water systems have been in place for more than 100 years. Estimates project hundreds of billions of dollars will be necessary to restore them, which would be the largest public works venture in American history.
- The Federal Highway Administration estimates that $170 billion of capital investment is required annually to significantly improve road conditions and performance.
- Approximately 1 in 9 of the nation's bridges are rated structurally deficient. An estimated $20.5 billion is needed annually to remedy the bridge deficient backlog by 2028, and yet only $12.8 billion is currently being spent.
Source: American Society of Civil Engineers
The portfolio consists of 26 professionally selected stocks believed to be in position to benefit from increased infrastructure spending in the United States.
Virtually all currently available infrastructure investment trusts and funds are global in nature and include large allocations to sectors such as telecommunications and utilities. In contrast, we've built this portfolio to specifically focus on U.S. infrastructure and sectors targeted by President-elect Donald Trump such as bridges, airports, water systems and roads, because these will likely be the largest recipients of new investment.
The BluePrint U.S. Infrastructure Portfolio seeks capital appreciation, however there is no guarantee the objective will be met.
Why Invest in the U.S. Infrastructure Portfolio
- Potential portfolio diversification benefits
- Professional security selection and risk management
- Transparency of all holdings and transactions
- Tactical Rebalancing
- Opportunity to potentially benefit from trillions of dollars of impending infrastructure investments
- Earn securities lending interest with the Stock Yield Enhancement Program
- Daily liquidity of the entire account value
- Sophisticated performance reporting
- Low minimum investment of $25,000
Trading commissions, management fees and expenses all may be associated with an investment in the U.S. Infrastructure Portfolio. The investments in the strategy are not guaranteed, their values change frequently and past performance may not be repeated. An investment in this portfolio should be made with an understanding of the risks involved with owning common stocks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market. The strategy is subject to management risk and an investorʼs return and principal value may fluctuate so that an investment, when liquidated, may be worth more or less than their original investment. BluePrint Asset Management's reliance on the strategy and its judgments about the value and potential
appreciation of the positions in which the strategy invests may prove to be incorrect. Overall market risk, including volatility, may affect the value of the individual instruments in which the strategy invests.
No current or prospective client should assume future performance of any specific investment strategy will be profitable or equal to past performance levels. This portfolio has the potential for profit or loss. Changes in investment strategies, contributions or withdrawals may cause the performance
results of your portfolio to differ materially from any reported composite performance.
You should be aware that the portfolio is concentrated in stocks in the industrials sector which involves additional risks, including limited diversification. The companies engaged in the industrials sector are subject to certain risks, including a deterioration in the general state of the economy, intense competition, domestic and international politics, excess capacity and changing spending trends.
An investment in a portfolio containing equity securities of foreign issuers is subject to additional risks, including currency fluctuations, political risks, tax withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.
An investment in a portfolio containing small-cap and mid-cap companies is subject to additional risks, as the share prices of small-cap companies and certain mid-cap companies are often more volatile than those of larger companies due to several factors, including limited trading volumes, products, financial resources, management inexperience and less publicly available information.
This portfolio is actively managed and there may be tax consequences unless held in an IRA or other qualified plan. The value of the securities held may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.
There are risks involved with investing, including possible loss of principal. Concentration in a particular asset class can subject investments to loss due to adverse occurrences that may affect that asset class.