RARE Infrastructure Limited

Global infrastructure assets are long term developments or projects serving communities around the world. They are assets that communities and economies require to function and prosper, such as airports, gas, electricity, water and roads.

Global infrastructure assets possess the following highly attractive investment features:

Longevity

Global infrastructure assets generally have long life spans beginning with a large capital investment at the green field (construction) stage then progressing through development to full maturity and long term operations. The risk/return characteristics may change at each stage but once mature these assets can provide predictable earnings.

Reliability

Global infrastructure assets are generally highly resilient to economic conditions and demand is largely predictable because they represent essential community services. Investors therefore have greater certainty of underlying cash flows, earnings and dividends.

Attractive Yields

Global infrastructure assets, particularly mature assets, generally offer comparatively higher yields (dividends) due to greater predictability of long term investment, cash flows and earnings.

Protection from Inflation

Global infrastructure assets are generally largely protected from inflation as prices for essential community services such as gas, electricity and water are often indexed to inflation.

Low volatility

The global infrastructure sector is generally less volatile with a limited correlation to other investment sectors as its assets are primarily essential community services attracting predictable long term demand and hence delivering stable long term earnings.

Low Maintenance & Fixed Operating Costs

Global infrastructure assets are generally low maintenance and require little ongoing capital expenditure relative to operating cash flows. The operating cost base of these assets is also largely fixed.

Monopolies

Many global infrastructure assets, such as utilities, have legal or economic market monopolies meaning their returns are not subject to competitive market forces.

RARE Infrastructure primarily invests in the following global infrastructure assets:

* Generally, RARE Infrastructure invests only in the monopoly aspects of the electricity industry, meaning reduced exposure to retail and energy trading.

^ Electricity generation companies that are subject to competitive market forces and do not have hedged or otherwise contracted revenue streams do not satisfy RARE Infrastructure’s investment criteria.