IMPORTANT NOTICE: Please note that the Product Disclosure Statement (PDS) for the RARE Infrastructure Value Fund - Hedged has been combined with the PDS for the RARE Infrastructure Value Fund - Unhedged, Issue Number 1 dated 30th-June-2011. The RARE Series Infrastructure Value Fund and the RARE Series Emerging Markets Infrastructure Fund will also moved  to a new Product Disclosure Statement (Issue 3, dated 30th-June-2011). Any applications submitted on or after this date must be completed on the new application form.

Please click here to view changes to the transaction costs (buy/sell spreads) for the RARE Pooled Funds, effective for any applications and redemptions received from Monday 12th December 2011.

Home | RARE Infrastructure Value Fund Market Commentary – May 2010

RARE Infrastructure News

RARE Infrastructure Value Fund Market Commentary – May 2010

June 15 2010

May was a “shocker” for equity markets, with the US market (Dow Jones index) having its worst month since 1940. All markets were down in May (developed markets (MSCI World down -7.2%) and Emerging Markets (MSCI EM Local) down 5.6%.

Volatility was heightened due to:

• the Greek debt crisis spreading to Iberia’s debt funding/refinancing needs and associated anxiety over the effectiveness of austerity measures introduced to help reduce debt

• mixed economic news as to the sustainability of global growth ; and

• to a lesser extent the temporary concerns created from volcanic ash spreading over Europe

There are many views on the economic outlook but in essence we need to see the European sovereign credit outlook stabilize, further evidence of cyclical improvement in the US and less volatility for confidence to return to the markets.

Infra Regulation. The NZ Commerce Commission released a draft decision on airport regulation which was viewed by the market as being favourable, establishing an appropriate regulated asset base for future price resets.

Infra M&A.
• Transurban (tollroads) rejected two further bids from major shareholders and proceeded with a $530m equity raising at $4.60 to fund the Lane Cove Tunnel acquisition. One of the shareholders subsequently sold their 12% stake at $4.44 after the raising.

• MAp (Airports) issued notices to certain foreign shareholders to dispose of their shareholdings because the 40% government imposed foreign shareholding threshold had been breached.

Infra Funding. Canadian government committed US$550m in loans for a Detroit River toll bridge. AdP (airports, Europe) announced a €500m bond issue at 80bps over swap (this is an attractive rate). Abertis has financed the R3-R5 tollroad in Spain with €370m from commercial lenders and €300m from the European Investment bank.

Other Infra News. The new UK coalition government announced its plans for the energy sector, in particular its support for nuclear generation and renewable energy.