Commenting on the release of the new fund, Prudential Investments president Stuart Parker said that the fund offers investors an opportunity to potentially benefit from these global trends.
Jennison Associates portfolio managers Shaun Hong and Bobby Edemeka have been appointed to oversee the fund management.
Hong said, "Infrastructure may provide investors with diversification within their portfolios, along with consistency, given that many of the companies in this sector provide necessary services no matter which economic cycle we’re in."
"The fund also offers a potential hedge against inflation because infrastructure contracts often allow prices to rise with inflation."
The fund managers will build a portfolio of 70 to 90 securities, following a rigorous bottom-up, fundamental, research-based strategic analysis. They will consider a smaller group of stocks based on attractive company fundamentals, emerging themes and other trends.
The fund uses the S&P Global Infrastructure Index as a benchmark, while Hong and Edemeka use a total return strategy that looks beyond the index to define infrastructure as companies that own, operate, develop and service infrastructure assets.
Prudential Investments delivers mutual funds across a variety of asset classes and sectors, such as equity, fixed income, real estate, and specialty securities.
Prudential Financial had more than $1trn of assets under management as of 30 June, 2013, and trades in the US, Asia, Europe, and Latin America.
