Andrey Grigoriev Cohen & Steers Infrastructure Fund (NYSE: NYSE: UTF ) is a closed-end fund with a focus on investing in infrastructure assets to deliver attractive streams of current income to its unitholders. The benefit of investing in infrastructure asset class is not only bound by the above average yields, but also it introduces into an equation an additional layer of safety and income predictability. For example, if we look at UTF distribution data we will notice that the current yield is indeed enticing at ~8.
1% and that the Fund has not cut its distributions since the inception back in 2004. January this year, I wrote a bullish article on UTF - UTF: This 8.5% Yielder Has Become More Attractive .
As the title implies, I changed my initial investment stance from neutral to bullish due to primarily improved probabilities of not being experiencing additional interest rate hikes. For infrastructure assets having interest rate predictability in place coupled with the gradually improving cost of debt conditions are inherently supportive factors that should drive the market cap levels higher and render the underlying cash flows stronger. I would say that since January, 2024, it has become even more clear that we will not see SOFR rising higher and that the incremental moves made by the Fed will be related to the interest rate cuts.
This is what we can nicely see in the chart below. On a YTD basis has registered a very solid total return performance of ~12%. Ycharts However, i.
