RARE’s fund sees strong start to the year
RARE Infrastructure has reported a strong start to the year for its Income Fund, which saw a return of 14.7 per cent for the three months to the end of March, net of fees.
At the same time, the fund’s benchmark, the OECD G7 Inflation Index plus 5.5 per cent, was up 7.2 per cent over the 12 months and the S&P Global Infrastructure Index was up 16.8 per cent over the same period.
RARE’s senior investment analyst and portfolio manager, Shane Hurst, attributed the fund’s success to the fact that infrastructure offered lower volatility, stable cash flow, inflation protection and diversification.
“Infrastructure companies provide predictable income distributions due to stable earnings derived from the underlying asset. Regulation and/or long-term contracts provide stable cash flow and greater capital stability,” he said.
The fund also initiated positions in several companies during the quarter, which included Portuguese electricity company Energias de Portugal, airport operator Sydney Airport, Chinese toll road operator Shenzhen Expressway, and a US electric company Clearway Energy.
Domestically, its big holdings included Transurban and Spark Infrastructure.
AUTHOR
Oksana Patron
Recommended for you
The merger with L1 Capital will “inject new life” into Platinum, Morningstar believes, but is unlikely to boost Platinum’s declining funds under management.
More than half of the top 20 most popular shares bought by advised investors during the first half of 2025 were ETFs, according to AUSIEX data.
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.
