The RARE Infrastructure Income Fund is a defensive global infrastructure strategy that returns investors robust and predictable income distributions. Stable regulated cash flows are generated primarily from utility companies that deliver essential services. Regulation and long-term contracts provide visibility of revenue on a growing underlying asset base, rewarding investors with sustainable income and greater capital stability, particularly during times of uncertainty.
Listed infrastructure is a popular income solution for many. This is due to its track record of consistently delivering a higher yield compared to global equities and 10-year bonds. In creating listed infrastructure income portfolios, Portfolio Managers need to consider the fundamentals.
Australian investors, like many around the world, have a pronounced home bias when investing, and this is particularly true when building retirement or income orientated portfolios.
The Australian share market makes up only 2% of total world share market capitalisation and is heavily concentrated in Financials and Resources. Reducing home-bias risk and diversifying your portfolio while still earning a reliable income can be a challenge, but it is possible.
It is fast becoming consensus that we are in the late stages of the economic cycle, where increasing market volatility, lower economic growth, and greater uncertainty becomes more pronounced.
In this environment, investing in global listed infrastructure can protect your portfolios.