Stock Analysis & Valuation Cohen & Steers Infrastructure Fund, Inc (UTF)

• Previous Close: $25.85
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	35.00	35
Intrinsic value (DCF)	14.37	-44
Graham-Dodd Method	11.10	-57
Graham Formula	37.20	44

Strategic Investment Analysis

Company Overview

Cohen & Steers Infrastructure Fund, Inc. (NYSE: UTF) is a closed-end equity fund managed by Cohen & Steers Capital Management, Inc., specializing in infrastructure investments. Launched in 2004, the fund primarily targets value stocks of infrastructure companies across all market capitalizations in the U.S. public equity markets. Its portfolio is benchmarked against a composite index of 80% FTSE Global Core Infrastructure 50/50 Net Tax Index and 20% BofA Merrill Lynch Fixed-Rate Preferred Securities Index. The fund, formerly known as Cohen & Steers Select Utility Fund, Inc., focuses on essential infrastructure assets such as utilities, transportation, and energy, providing investors with exposure to stable, long-term cash flows. With a market cap of approximately $2.48 billion, UTF is a key player in the infrastructure investment space, appealing to income-focused investors due to its consistent dividend payouts. The fund's strategic focus on infrastructure aligns with growing global demand for upgraded and sustainable infrastructure, positioning it as a relevant choice in the financial services sector.

Investment Summary

Cohen & Steers Infrastructure Fund (UTF) presents an attractive investment opportunity for those seeking exposure to stable infrastructure assets with consistent income. The fund's diversified portfolio of value-oriented infrastructure stocks offers resilience against market volatility, supported by a beta of 0.89. UTF's strong net income of $274.3 million and diluted EPS of $2.84 reflect solid profitability, while its $1.86 dividend per share underscores its appeal to income investors. However, the fund's closed-end structure may lead to trading at premiums or discounts to NAV, introducing potential liquidity risks. Additionally, its heavy reliance on infrastructure sectors could expose it to regulatory and macroeconomic shifts affecting these industries. Overall, UTF is well-suited for long-term investors prioritizing dividend income and infrastructure growth potential.

Competitive Analysis

Cohen & Steers Infrastructure Fund (UTF) differentiates itself through its specialized focus on infrastructure equities, a niche within the broader asset management industry. Its competitive advantage lies in Cohen & Steers' expertise in real assets and infrastructure, allowing for targeted investments in sectors like utilities, transportation, and energy. The fund's benchmark, blending infrastructure and preferred securities indices, provides a balanced risk-return profile. UTF's closed-end structure enables long-term capital deployment without redemption pressures, unlike open-end funds. However, its performance is closely tied to infrastructure sector trends, which may lag during economic downturns. Competitors often offer broader utility or real asset exposure, but UTF's concentrated strategy appeals to investors seeking pure-play infrastructure access. The fund's lack of leverage (zero total debt) enhances stability, though this may limit returns in bullish markets. Its $2.48 billion market cap positions it as a mid-sized player, competing with larger, more diversified asset managers.

Major Competitors

• Reaves Utility Income Fund (UTG): UTG focuses on utilities and infrastructure, offering higher dividend yields but with less pure infrastructure exposure than UTF. Its larger asset base provides scale advantages, but its performance is more utility-centric, potentially limiting growth during infrastructure booms.
• BlackRock Utility, Infrastructure & Power Opportunities Trust (BUI): BUI combines utilities and infrastructure, similar to UTF, but with BlackRock's extensive resources. Its global reach diversifies risk, though UTF's U.S.-centric approach may appeal more to domestic investors. BUI's expense ratio is competitive, but its performance can be more volatile due to international exposure.
• iShares U.S. Infrastructure ETF (IFRA): IFRA is an ETF providing passive exposure to U.S. infrastructure, contrasting with UTF's active management. IFRA's lower fees attract cost-conscious investors, but UTF's active strategy may outperform during market dislocations. IFRA lacks the dividend focus of UTF, making it less appealing for income seekers.