RGAVX
ClearBridge Global Infrastructure Inc-A
Introduction to ClearBridge Global Infrastructure Inc-A
ClearBridge Global Infrastructure Inc-A (RGAVX) is a mutual fund designed to provide both capital appreciation and income, making it an attractive option for investors interested in the infrastructure sector. Managed by Franklin Templeton Investments, this fund invests at least 80% of its net assets in securities issued by companies engaged in the infrastructure business. With a focus on specialty investments, RGAVX aims to capitalize on the growing demand for infrastructure development worldwide. The fund’s strategy is to balance growth and income, offering a yield of 3.77% and an expense ratio of 1.31%. This makes it a compelling choice for investors seeking exposure to infrastructure with the potential for steady income.
At A Glance
Executive Summary
RGAVX offers a unique focus on infrastructure with a 3.77% yield, suitable for investors seeking capital appreciation and income.
Focus on infrastructure sector with growth potential. Provides income with a 3.77% yield. Diversified across utilities and energy sectors.
Higher expense ratio at 1.31%. Negative alpha and Sharpe ratio indicate risk. Limited exposure to technology and healthcare sectors.
Performance Analysis: Navigating Market Challenges
RGAVX has demonstrated a mixed performance over recent years, with a notable 15.28% return over the past year. However, its performance relative to its benchmark, the MSCI World DivAdj Index, which posted a 31.60% return, indicates room for improvement. The fund’s alpha of -16.35% and Sharpe ratio of -1.24 suggest that it has faced challenges in delivering risk-adjusted returns. Despite these hurdles, the fund’s beta of 0.76 indicates lower volatility compared to the market, which may appeal to risk-averse investors. The fund’s standard deviation of 3.81% further underscores its relatively stable performance, albeit with some downside risk as indicated by its downside risk measure of 3.49%.
Sector Allocation: A Strong Focus on Utilities and Energy
The sector allocation of RGAVX is heavily weighted towards utilities, which comprise 66.85% of the portfolio, followed by energy at 12.88% and industrials at 12.52%. This allocation reflects the fund’s strategic focus on sectors that are integral to infrastructure development. The absence of technology and healthcare sectors in the portfolio highlights the fund’s commitment to its core investment theme. The significant exposure to utilities and energy sectors positions the fund to benefit from stable cash flows and potential growth in these essential industries. Investors seeking a fund with a concentrated focus on infrastructure-related sectors may find RGAVX’s allocation strategy appealing.
Top Holdings: Key Players in Infrastructure
RGAVX’s top holdings include prominent companies in the infrastructure sector, such as Entergy Corp (5.18%), Redeia Corporacion SA (4.50%), and Crown Castle Inc (4.11%). These companies are leaders in their respective fields, providing essential services and infrastructure solutions. The fund’s investment in NextEra Energy Inc (4.06%) and TC Energy Corp (3.70%) further underscores its focus on energy infrastructure. By investing in a diverse range of infrastructure companies, RGAVX aims to capture growth opportunities while providing income through dividends. This diversified approach within the infrastructure sector helps mitigate risks associated with individual company performance.
Risk Metrics: Understanding the Fund’s Volatility
RGAVX’s risk metrics reveal important insights into its volatility and performance. The fund’s beta of 0.76 suggests it is less volatile than the broader market, which may be attractive to conservative investors. However, the negative alpha of -16.35% indicates that the fund has underperformed its benchmark on a risk-adjusted basis. The Sharpe ratio of -1.24 further highlights the challenges in achieving positive returns relative to risk. Despite these concerns, the fund’s standard deviation of 3.81% and downside risk of 3.49% suggest a relatively stable performance with manageable risk levels. Investors should consider these metrics when evaluating the fund’s suitability for their portfolios.
Comparative Analysis: How RGAVX Stacks Up Against Peers
When compared to similar funds, RGAVX presents a unique investment proposition with its focus on infrastructure. While its expense ratio of 1.31% is higher than some peers, such as Towpath Technology Inst (TOWTX) with an expense ratio of 0.0112%, RGAVX offers a higher yield of 3.77%. This yield is competitive compared to other funds like TRPrice Global Consumer-Inv (PGLOX) and Baron Health Care-Inst (BHCHX), which offer lower yields. The fund’s beta of 0.76 is also lower than some peers, indicating less volatility. Investors seeking a fund with a strong infrastructure focus and income potential may find RGAVX’s unique attributes appealing despite its higher expense ratio.
Market Cap and Asset Class Allocation: A Balanced Approach
RGAVX’s market cap allocation is diversified across various company sizes, with medium-cap companies making up 40.39% of the portfolio, followed by large-cap at 36.88% and small-cap at 7.65%. This balanced approach allows the fund to capture growth opportunities across different market segments. The asset class allocation shows a significant investment in non-U.S. equity (58.67%) and U.S. equity (40.00%), providing geographic diversification. The fund’s minimal cash allocation of 1.33% indicates a strong commitment to equity investments. This diversified market cap and asset class strategy positions RGAVX to benefit from both domestic and international infrastructure developments.
Conclusion: Is RGAVX the Right Fit for Your Portfolio?
In conclusion, ClearBridge Global Infrastructure Inc-A (RGAVX) offers a unique investment opportunity for those interested in the infrastructure sector. With a focus on capital appreciation and income, the fund provides a 3.77% yield and a diversified portfolio across utilities and energy sectors. While the fund’s higher expense ratio and negative risk-adjusted performance metrics may be a concern for some investors, its lower volatility and strong sector focus make it an attractive option for those seeking stability and income. Investors looking for exposure to infrastructure with the potential for steady returns should consider RGAVX as a valuable addition to their portfolios.
Similar Securities
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RGAVX: ClearBridge Global Infrastructure Inc-A | Infrastructure Investment with Income Potential
RGAVX offers a unique focus on infrastructure with a 3.77% yield, suitable for investors seeking capital appreciation and income.
GIZAX: Invesco Global Infrastructure-A | Global Infrastructure Equity Fund
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Futher Reading
https://www.morningstar.com/funds/xnas/RGAVX/quote
https://finance.yahoo.com/quote/RGAVX/”>Yahoo: ClearBridge Global Infrastructure Inc-A
https://ftcloud.fasttrack.net/web/chart/RGAVX
https://www.wsj.com/market-data/quotes/mutualfund/RGAVX
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