What is global listed infrastructure?

Infrastructure assets are essential services that economies require to function and prosper, such as airports, gas, electricity, water and roads.

Good infrastructure provides key services efficiently, improves the competitiveness of, and generates high productivity for economies. In addition, the ongoing maintenance and development of these assets necessitates large capital spending programs, creating jobs.

Listed infrastructure comprises of publicly traded securities of infrastructure assets that combine the dependable cash flows offered by infrastructure investments with the liquidity of the listed markets.

The different types of assets and their risk return profile are represented in the diagram below. RARE seeks to invest primarily in the Regulated and User Pays assets space, shaded below.

Why invest in global listed infrastructure?

Global infrastructure assets possess the following 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 dividends yields 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, water and toll roads are often indexed to inflation.
  • Low volatility — The global infrastructure sector is generally less volatile with a limited correlation to other investment sectors. Governments have tended to implement regulatory or long-term contractual framework. That results in predictable revenues and stable earnings over economic cycles.

About RARE

RARE Infrastructure (RARE) was established in 2006 as an investment management company focused exclusively on global listed infrastructure. Their philosophy is to provide investors with a high quality portfolio of listed infrastructure securities managed by an experienced team of specialists.

The company’s investment and risk management approach is reflected in its name – Risk Adjusted Returns to Equity (RARE), with the risk / return relationship being a prime focus.

Related Video

Introduction to RARE

Meet the Managers

Nick Langley –
portfolio manager

  • Co-Chief Executive Officer and Co-Chief Investment Officer
  • Founder and Director of RARE Infrastructure since 2006
  • 22 years of Industry experience

Richard Elmslie –
portfolio manager

  • Co-Chief Executive Officer and Co-Chief Investment Officer
  • Founder and Director of RARE Infrastructure since 2006
  • 35 years of industry experience