In the first quarter of 2026, the Northern Funds Multi-manager Global Listed Infrastructure Fund recorded a 7.82% return, falling short of its benchmark, the S&P Global Infrastructure Net Index, which achieved an 8.12% return. This period saw varied outcomes among the fund's sub-advisers, reflecting a dynamic global listed infrastructure landscape. While sectors such as utilities and oil and gas infrastructure demonstrated robust growth, other areas like airports and independent power producers experienced a downturn.
Northern Multi-Manager Global Listed Infrastructure Fund: A Detailed Q1 2026 Overview
In the initial quarter of 2026, Northern Trust Asset Management's Multi-manager Global Listed Infrastructure Fund navigated a complex market environment. During this period, from January to March 2026, the fund's performance was closely watched against its designated benchmark, the S&P Global Infrastructure Net Index. This benchmark, which broadly represents the global listed infrastructure sector, posted a commendable return of +8.12%.
However, the Northern Funds Multi-manager Global Listed Infrastructure Fund concluded the quarter with a slightly lower return of +7.82%. This marginal underperformance prompted a closer look into the individual contributions of its sub-advisers.
Lazard, one of the fund's key sub-advisers, faced challenges that led to its underperformance. This was primarily attributed to its strategic positioning, which included significant investments in communications towers and a notable absence of exposure to the oil and gas infrastructure sector. These choices proved to be less favorable in the prevailing market conditions, impacting overall fund returns negatively.
Conversely, Cohen & Steers, another sub-adviser, delivered a stronger performance, surpassing expectations. Their success stemmed from astute stock selection across their portfolio. Additionally, their strategic underweighting in specific sub-sectors, namely airports, highways, and rail tracks, contributed positively to their results, as these areas experienced declines within the broader market.
Eagle Global Advisors also emerged as an outperformer, particularly with its energy infrastructure strategy. This sub-adviser's overweight position in oil and gas infrastructure aligned well with the quarter's market trends, allowing it to capitalize on the strong performance of this sector.
The global listed infrastructure sector itself experienced a nuanced quarter. While utilities and oil and gas infrastructure led the way with robust returns, showcasing the resilience and growth potential within these areas, other infrastructure segments did not fare as well. Airports and independent power producers (IPPs), in particular, lagged behind, indicating varied performance across the diverse components of the infrastructure market.
Reflections on Investment Strategies and Market Dynamics
The first quarter of 2026 offers valuable insights into the intricate dynamics of global listed infrastructure investments. It underscores the importance of diversified strategies and the impact of sub-adviser performance on overall fund outcomes. For investors, this period highlights the necessity of thorough due diligence, not only on the overarching fund but also on the specific investment philosophies and sector exposures of its underlying managers. The contrasting performances of Lazard, Cohen & Steers, and Eagle Global Advisors within the same fund illustrate that even within a focused sector like infrastructure, different approaches can lead to significantly varied results. This reinforces the idea that strategic allocation and active management remain crucial in navigating volatile markets and optimizing returns. It also serves as a reminder that market leadership can shift, with sectors like oil and gas infrastructure and utilities demonstrating strength, while others such as airports face headwinds, necessitating continuous adaptation and re-evaluation of investment theses.
