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OUR COMPANY AND AFFILIATES
CBRE GLOBAL INVESTORS

CBRE Global Investors, combined with CBRE Clarion Securities and CBRE Caledon, is one of the world’s leading real asset investment managers providing real estate and infrastructure investment solutions to over 500 clients worldwide.

CBRE GROUP

CBRE Global Investors is the investment management division of CBRE Group, Inc. the world’s premier commercial real estate services and investment firm.  The company’s shares trade on the New York Stock Exchange under the symbol “CBRE.”

REAL ESTATE SERVICES
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GLOBAL LISTED INFRASTRUCTURE

Inflation Plus Return Potential

March 2018

As inflation concerns among investors today continue to grow, theinflation-hedging benefits found in global infrastructure become evenmore beneficial to a mixed-asset portfolio.

Global infrastructure assets are tangible, physical assets with inelastic demand andmonopolistic profiles. These essential assets benefit from contractual or regulatorydriven, inflation-linked revenue growth. Moreover, the companies benefit from earninga regulated return on capital expenditures needed to upgrade and enhance existinginfrastructure assets. The combination of organic inflation-linked revenue and regulatedinvestment returns is an operating earnings growth that far outpaces inflation.

Inflation-Linked Revenue Growth
TAX CUT ON REIT DIVIDENDS

Global infrastructure asset owners canpass through the effects of inflation viahigher prices. For example, toll road assetsmay offer inflation protection as contractstypically tie tariffs explicitly to inflation. Inother instances, such as regulated utilitiesin the U.K. and Italy, regulated returnsare set based on real returns, which takeinflation into account rather than nominalreturns, again allowing for a direct link toinflation. In most jurisdictions, regulatedreturns are set with reference to the risk-free rate, which is itself a function ofinflation.

Investment Growth

In addition to inflation-linked revenue,global infrastructure companies growearnings and dividends through capitalinvestments to upgrade, improve, orenhance their existing infrastructureassets. Such spending offers them anopportunity to earn a rate of return onthese investments in excess of their costof capital, which drives cash flow growth.In most instances, the investments areundertaken with a known regulatedreturn; the regulated return takes inflationinto account and is at a spread to thecompanies’ cost of capital.

Infrastructure assets offer hedging benefits in a rising inflation environment
Regulated Assets

Regulators set allowed returnswith reference to the risk-freerate, so returns increase whenbond yields rise to reflect higherinflation expectations

Concessions Assets

Typically have inflation linkedtariffs coupled with some level ofdemand risk (i.e. higher volumeleads to growth in revenues)

Monopolistic Assets

Some types of infrastructure havelimited or no competition andhave demonstrated pricing power

CBRE CLARION GLOBAL INFRASTRUCTURE UNIVERSE
Inflation Protection is a Hallmark of Infrastructure Assets
See important disclosure information on back page.1
Stable Cash Flows

Some of the key features of global infrastructure are the inherent high barriers to entryand often difficult-to-replace physical assets that are essential for society to function.These assets typically benefit from monopolies and inelastic demand, which is the sourceof their stable cash flows over long periods of time. Global listed infrastructure historicallyhas generated relatively predictable and rising cash flows, which has led to strongdividend growth across market cycles and through various macroeconomic events. Thismeans global infrastructure is less affected by macroeconomic activities, such as inflationand rising interest rates, and economic cycles compared to other investments.

Strong cash flows have led to 20 years of dividend growth at a 6.1% CAGR
CBRE CLARION GLOBAL INFRASTRUCTURE UNIVERSE
Inflation Protection is a Hallmark of Infrastructure Assets
See important disclosure information below.2

Incorporating global listed infrastructure into a mixed-asset portfolio may provide anattractive combination of inflation-linked revenue growth and rising cash flows. At CBREClarion, we incorporate inflation directly into our assessment of each company, basedon their assets, contracts and location. We believe our global infrastructure resourcescombined with a high-conviction and risk-conscious investment process, enhances ourability to generate outperformance while capturing the stability, income, and growthpotential of listed infrastructure.

IMPORTANT DISCLOSURES

1Source: FTSE Global Core Infrastructure Index 50/50 as of 12/31/2016. “Explicit Inflation Pass Through” includes companies with the ability to offset higher costs through reve-nues that rise in tandem with inflation, over a relatively short timeframe. “Implicit Inflation Pass Through” applies to companies with revenues that rise with inflation over a longertimeframe. “Market Based Monopolistic” category applies to companies who have dominant pricing power in their sectors, whereas Market Based Competitive applies to thosewith less pricing power. Companies that have fixed escalators in their contracts are grouped in the “Escalators” category and are deemed to have the least inflation protection.Standard & Poor’s 500 Indexis an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy throughchanges in the aggregate market value of 500 stocks representing all major industries.

2Source: Global infrastructure universe is represented by CBRE Clarion Infrastructure investable universe, Global Equities: MSCI AWCI Index and U.S. Inflation: U.S. ConsumerPrice Index data as of 12/31/2017. This information is subject to change and should not be construed as investment advice. An index is unmanaged and not available for directinvestment For comparison purposes, company operating earnings and the U.S. Consumer Price Index values were rebased to 100 on 12/31/2000. Yields fluctuate and are notguaranteed. Past performance is no guarantee of future results.

©2018 CBRE Clarion Securities LLC. All rights reserved. The views expressed represent the opinions of CBRE Clarion which are subject to change and are not intended as aforecast or guarantee of future results. Stated information is provided for informational purposes only, and should not be perceived as investment advice or a recommendation forany security. It is derived from proprietary and non-proprietary sources which have not been independently verified for accuracy or completeness. While CBRE Clarion believes theinformation to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections,and other forward-looking statements are based on available information and management’s view as of the time of these statements. Accordingly, such statements are inherentlyspeculative as they are based on assumptions which may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially fromthose expressed or implied in such statements.

Past performance of various investment strategies, sectors, vehicles and indices are not indicative of future results. Investing in infrastructure securities involves risk includingto potential loss of principal. Infrastructure equities are subject to risks similar to those associated with the direct ownership of infrastructure assets. Portfolios concentrated ininfrastructure securities may experience price volatility and other risks associated with non-diversification. While equities may offer the potential for greater long-term growth thansome debt securities, they generally have higher volatility. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differencesin generally accepted accounting principles, or from economic or political instability in other nations. There is no guarantee that risk can be managed successfully. There are noassurances performance will match or outperform any particular benchmark. Indices are unmanaged and not available for direct investment. PA03122018