RARE reduces fees on infrastructure funds
RARE Infrastructure has reduced fees on its suite of global infrastructure funds including removing performance fees from the Infrastructure Value funds.
Performance fees would be removed on the hedged and unhedged versions of the RARE Infrastructure Value funds, a change which took place on 1 July.
There was also a reduction in the buy/sell spreads on RARE’s three listed infrastructure funds.
The new spreads for the RARE Infrastructure Income and Value – hedged and unhedged funds were buy 0.12% / sell 0.05% which represented a reduction of 0.08% and 0.10% respectively. The RARE Emerging Markets fund has reduced to 0.14% / 0.17%.
The firm said it had also introduced new sector designations for its renewable and energy infrastructure vehicles which were designed to “enhance the granularity of reporting and reflect developments and expected growth in the asset class”.
Steve Williams, head of intermediary sales at RARE, said: “For Australian investors, it is worth noting that global listed infrastructure stocks can provide an attractive source of income in the current environment and have a low correlation to domestic equities and global bonds. This makes them an ideal vehicle to provide portfolio diversification. Regulation and long-term contracts generally offer stable cash flow and greater capital stability.
"We continue to believe that this is a time when select listed infrastructure can significantly fortify an individual or self-managed superannuation fund portfolio on the basis that certain infrastructure assets can be shown to offer significant downside protection."
AUTHOR
Laura Dew
Recommended for you
Sydney-based alternative fund manager East Coast Capital Management has formed its first advisory council as it enters its next phase of growth.
With 40 per cent of advice practices looking to increase their ETF usage, the next frontier being embraced is smart beta ETFs with flows doubling in July, providers have said.
Australian ETFs saw flows of $5.8 billion in July, more than double the previous month, and adviser adoption is tipped to help total flows reach $50 billion by the end of the year.
Pinnacle’s London affiliate, Life Cycle Investment Partners, has secured over $15 billion in FUM in its first year and achieved profitability, the firm’s fastest affiliate to do so.
