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By Andrew Gogerty | 03-17-2010 04:05 PM

Rosenberg: Opportunities Abound in Infrastructure

These are unique allocation benefits to owning infrastructure companies and many look very attractively valued, says First American Global Infrastructure Fund manager Jay Rosenberg.

Andrew Gogerty: Hi, this is Andrew Gogerty with Morningstar, and today we're going to be discussing the appeal and the increase in opportunity for global infrastructure funds. Global infrastructure has been one of the areas that has seemed to be key in the economic recovery, both in the U.S. and abroad.

To discuss some of the opportunities in the sector and the resurgence of popularity in investing there, I have with me today Jay Rosenberg, lead manager of the First American Global Infrastructure Fund. Jay, thank you for joining me today.

Jay Rosenberg: Thanks for having me here.

Gogerty: Now obviously you have a bias, but what is the appeal to investing in this sector through a narrow fund as opposed to giving a global or a diversified manager the ability to go there when they spy value? Why a fund just focused on this sector?

Rosenberg: Well, I think you need a fund that is focused on the...to have a concentrated portfolio gives you access to the unique asset allocation benefits of owning infrastructure. It is very unique. The infrastructure companies have very defined, visible cash flows.

They're monopolistic. Oftentimes, the assets are monopolistic, so a regulator needs to step in and determine pricing, which means the demand is more inelastic. Demand doesn't ebb and flow as much with changes in the economy.

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