NXG NextGen Infrastructure Strategy
What Is NextGen / Overview / Quick Facts / Positioning / Portfolio Managers / Investment Vehicles / Materials
The Evolution of Infrastructure
The infrastructure investment landscape is rapidly evolving due to technological advancements, sustainable infrastructure, and renewable energy. These coupled with the critical need for traditional infrastructure make a compelling combination we call NextGen.
What Is NextGen Infrastructure
Infrastructure investment landscape is rapidly evolving due to technological advancement and obsolescence across all sectors
Some traditional growth infrastructure companies are now in their maturity phase (e.g. coal plants)
We believe many traditional infrastructure companies will become leaders in implementing technological innovations
Emerging companies that historically may not have been considered infrastructure are becoming the backbone of the new economy
We believe investing in NextGen infrastructure provides opportunities for attractive risk-adjusted returns of the next several decades
Investment Opportunity
Companies meeting our definition of NextGen infrastructure have a combined market cap of over $17 trillion, providing a range of opportunities
Global data is doubling every 2 to 3 years1 as cloud-based infrastructure revenues are expected to grow $500 billion over the next 5 years2
The US digital economy has grown $1 trillion, twice the rate of US GDP growth, from 2005-20193
Clean infrastructure is a multi-decade opportunity requiring an investment of $94 to $175 trillion until 20504
41% of consumers plan to purchase an EV as their next car5, accelerating the demand for EV infrastructure
Battery storage capacity is doubling every 2.5 years with US developers reporting a 10x growth from 2020 to 20236
BofA. “To the Moon(shots)! – Future Tech Primer” 9/14/2021
ReporterLinker. “Cloud Computing Market by Service, Deployment Model, Organization Size, Vertical and Region – Global Forecast to 2026”. October 2021
Bureau of Economic Analysis. “Updated Digital Economy Estimates – June 2021”
BNEF. “New Energy Outlook” July 2021
Ernst & Young Global. “Four in Ten Consumers Plan Electric Vehicle Purchase as Market Moves into High Gear” 7/20/2021
EIA. “Battery Storage in the Unites States: An Update on Market Trends” August 2021
Strategy Overview
The NXG NextGen Infrastructure strategy invests in publicly traded companies throughout the world across four critical Infrastructure investment themes:
Clean & Sustainable Infrastructure
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Renewable Energy Infrastructure
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Electric Vehicle Infrastructure
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Hydrogen Infrastructure
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Water Infrastructure
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Waste Infrastructure
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Emerging Infra Verticles
Communication & Technology Infrastructure
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Data Storage Infrastructure
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Wireline Infrastructure
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wireless Infrastructure
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Communication Infrastructure
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Cloud Infrastructure
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Emerging Infra Verticles
Energy Infrastructure
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Midstream Energy
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Transmission Infrastructure
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Electricity Generation Infrastructure
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Natural Gas Distribution Infrastructure
Industrial Infrastructure
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Toll Road Infrastructure
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Port Infrastructure
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Airport Infrastructure
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Railroad Infrastructure
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Engineering Infrastructure
Quick Facts
Inception Date
February 1, 2019
Target Number of Holdings
30 to 60
Target Maximum Position Size
<5%
Target Cash Position
<5%
Target Annual Turnover
~20% to 60%
Investable Universe1
682 Companies
$17.2 Trillion market cap
Benchmark
S&P Global Infrastructure Index TR Net
Source Bloomberg. Total addressable market data as of March 31, 2022
Portfolio Managers
Investment Vehicles
The NXG NextGen Infrastructure strategy is available in a variety of investment vehicles for institutional, retail, registered investment advisors, and family offices. Please Contact Us for more information.
