Why Infrastructure

What are infrastructure assets    

Infrastructure is the physical assets that provide an essential service to society. These are the services we use and interact with every day. For instance, we use gas, water and electricity to carry out our daily activities and we also use infrastructure, such as airports, rail and roads, to move people and goods from location to location.

RARE’s investment process is designed to leverage the observation that, over time, asset valuations reflect long-term cash flows. As a result, RARE focuses on the infrastructure assets that display more predictable cash flows.

Broadly, infrastructure can be categorised into:

Why invest in global listed infrastructure

At RARE, we focus exclusively on global listed infrastructure. These are publicly traded infrastructure securities such as the shares of electricity, water and airport companies around the world.

Importantly, investing in the listed markets provides the flexibility to take advantage of market movements and to invest where we, as active managers, see value.

Listed infrastructure investors can take advantage of the attractive characteristics of the infrastructure asset class while enjoying the benefits of the listed markets such as liquidity and lower fees.

Excluded from our universe

RARE's goal is to deliver a core infrastructure return to our investors and believes that the following companies will deliver more of an equity return.

As such, RARE exclude companies with the following characteristics from our investable universe:

  • Companies that do not own hard assets
    These include service, logistics and maintenance companies.
  • Companies with commodity exposure
    Such as independent power producers, wholesale market exposed generators and upstream oil and gas companies.
  • Competitive assets
    Such as telecommunication companies and utility retailers.