Cohen & Steers Infrastructure Opportunities Active ETF (CSIO)

Overview

CSIO invests primarily in a concentrated portfolio of both US and international infrastructure companies. The selection of securities is grounded in a value-oriented, bottom-up research process. This process evaluates firms based on several key factors, including financial strength, management quality, industry positioning, and various valuation metrics such as price/earnings ratios, price/cash flow, dividend yield, and earnings growth potential. The fund targets a diverse range of infrastructure-related companies, including those in utilities, energy transport, communications networks, transportation systems, social infrastructure, and related suppliers, while also allocating a portion of investments—up to 25%—to emerging markets.

Although the primary focus of CSIO is on common stocks, the fund maintains flexibility by also accommodating preferred securities, hybrids, PIPEs (Private Investment in Public Equity), REIT-structured infrastructure assets, IPOs, and up to 20% in fixed-income securities. CSIO does not specifically target ESG (Environmental, Social, and Governance) outcomes; however, it considers relevant ESG factors in its opportunity assessments. Furthermore, derivatives and currency hedging strategies may be employed primarily for risk management purposes.

Products and Services

• Common Stocks:

  Focuses on investing in publicly traded companies within the infrastructure sector, selected based on a rigorous analysis of their financial and operational strength, as well as their market position.

• Preferred Securities:

  Invests in preferred stocks that typically offer fixed dividends and are prioritized over common stocks in asset liquidation scenarios, providing a more stable return profile.

• Hybrids:

  Includes securities that combine features of debt and equity, allowing for varied performance based on underlying asset movements while providing diversified exposure.

• PIPEs (Private Investment in Public Equity):

  Utilizes private funding rounds whereby institutional investors purchase shares at a discount from publicly traded companies, allowing access to potentially undervalued investments.

• REIT-Structured Infrastructure Assets:

  Invests in Real Estate Investment Trusts focused on infrastructure projects, which can provide dividend income and capital appreciation based on real estate market dynamics.

• IPOs (Initial Public Offerings):

  Participates in IPOs to invest in companies that are newly listed on the stock market, often seeking to capture early growth potential in promising infrastructure firms.

• Fixed-Income Securities:

  Allocates up to 20% of the portfolio to fixed-income investments, which offer steady interest payments and reduced volatility compared to equity investments.

• Risk Management Using Derivatives:

  Employs derivative instruments primarily for hedging purposes, helping to manage and mitigate risks associated with market fluctuations and currency exposure.