Appealing to SMSF advisers when it comes to infrastructure investments requires a high level of specialised knowledge and education.
“Focusing solely on investing in listed infrastructure means that we don’t have the distractions of other asset classes,” RARE founder, co-chief executive and co-chief investment officer Nick Langley says.
“As such, we are recognised as thought leaders in the infrastructure asset class offering specialised knowledge and education to financial services professionals.
“We do this through quarterly updates, webinars, thought leadership papers, specialised marketing material and attending industry conferences and events.”
In a time of continued market uncertainty and low interest rates, Langley explains infrastructure assets provide essential services that serve communities around the world.
“These include assets such as airports, rail, roads, electricity and gas pipelines that local and national economies require to function and prosper,” he explains.
He says as a specialist investment manager, RARE is focused exclusively on identifying and investing in the best infrastructure assets in the listed equity market, with the goal of delivering strong absolute returns over an investment cycle to its clients.
“Our investment approach is reflected in our name – Risk Adjusted Returns to Equity (RARE) with the objective of providing investors access to portfolios of high-quality global infrastructure assets,” he says.
RARE employs 53 staff, including 15 investment professionals, making it one of the largest teams of infrastructure investment specialists in the marketplace.
The firm currently manages three core strategies available to advisers and SMSFs: the RARE Global Value Strategy, Emerging Markets Strategy and Yield/Income Strategy.
“At RARE, we focus on listed infrastructure. These are publicly traded infrastructure securities such as the shares of electricity, water and airport companies,” Langley says.
“Recent market uncertainty and volatility have presented attractive opportunities for investors due to the compelling characteristics of the asset class. Within a portfolio, infrastructure offers the potential for lower volatility, stable cash flow, inflation protection and diversification.
“As such, advisers and SMSFs are finding that infrastructure assets offer increasingly attractive opportunities in the current low-yielding environment.”
The infrastructure manager has strong relationships across all Australian dealer groups, as well as platforms, and due to increasing demand, particularly from the SMSF sector, it is now offering the RARE Global Value Strategy through the Australian Securities Exchange mFund settlement service.
“RARE is delighted and appreciative to the financial advisers in our industy who have recognised our long-term performance and reputation as a listed infrastructure specialist,” Langley says.
“Credit should be attributed to RARE’s collaborative team approach.”
In 2015, RARE became an independent affiliate of Legg Mason Asset Management.
The second half of 2016 has generated greater interest from Australian and overseas institutional investors, with over $500 million raised since 1 July from new clients.