RARE Infrastructure was established as a specialist global listed infrastructure investment manager in 2006. Today we benefit from being a part of ClearBridge Investments, a US$177bn* equities manager, with a shared culture of client focus, research-driven authentic active management and ESG integration. We aim to deliver long term inflation-linked capital growth by providing investors access to the risk/return profile of unlisted infrastructure through the listed market.
*As at 31 December 2020.
At RARE, we aim to deliver an infrastructure return through the listed markets, not an equity return via infrastructure stocks. To achieve this, RARE's proprietary investable universes include only 'core infrastructure' securities. These companies own hard assets that are essential to society and have regulatory and/or contractual frameworks which provide stable and predictable cash flows.
RARE’s approach to company valuation mirrors that used by unlisted investors and centres around the belief that, over time, the underlying value of assets is reflected in long-term cash flows. Many generalist investors take a shorter term view which can create market mispricings. These differences provide clear investment signals, allowing RARE to position portfolios to generate long-term infrastructure returns.
RARE believes that an absolute return, inflation-linked benchmark is the most appropriate primary measure against which to evaluate the long-term performance of a listed infrastructure strategy. This approach ensures portfolio construction focuses on delivering long-term real returns and provides flexibility to manage through changing economic environments, as opposed to index relative positioning which can adversely impact stock selection decisions over the long term.
RARE's Investment team is one of the largest in the peer group. Our singular focus creates long-term value for investors through deep understanding and pricing of infrastructure-related risks. The team has a diverse range of specific skills developed from backgrounds including unlisted infrastructure investing, research, and roles working for or advising regulators, governments, infrastructure companies and investors. The team at RARE are infrastructure experts managing Funds, not fund managers investing in infrastructure.
At RARE, understanding and managing risk is interwoven throughout all aspects of our investment process and investment committee approach to portfolio construction. At the heart of our bottom-up investment process is understanding and managing the relationship between risk and returns as it applies to infrastructure assets.
This approach is reflected in our name; Risk Adjusted Returns to Equity (RARE).
Infrastructure assets, regardless of whether they are listed or unlisted, exhibit the same characteristics and operating cash flows.
RARE believes that by using a longer-term fundamental valuation approach when investing in listed markets through the cycle, significant opportunities arise as listed markets misprice infrastructure assets in the short term.
Through accessing listed infrastructure markets, RARE views both the liquidity and investable opportunity set as greater, further allowing for enhanced infrastructure returns to investors.
RARE's investment approach to our actively managed strategies uses a bottom-up, fundamental analysis in our research process, undertaken within a rigorous analytical framework.
Since our inception, RARE have integrated the consideration of Environmental, Social and Governance issues within our Investment Process and approached the ownership of equity in listed infrastructure companies from a long-term and sustainability-driven perspective.
Became wholly owned by global asset manager Franklin Resources, Inc.
Became a wholly owned affiliate of Legg Mason & announced a formal business integration with ClearBridge Investments, LLC
The RARE Global Infrastructure Index was developed.
Legg Mason Global Asset Management acquired a majority equity interest in the RARE Group.
RARE became a National Partner supporting WaterAid’s work in Timor-Leste.
RARE became a signatory of the Principals of Responsible Investing.
The RARE Infrastructure Income Strategy was launched.
The RARE Emerging Markets Strategy was launched.
RARE was established.
The RARE Infrastructure Value Strategy was launched.
Richard Elmslie & Nick Langley created the concept for RARE, applying their infrastructure experience in the unlisted market to analysing & investing in the listed market.