New fund targets infrastructure returns

Rapid development in the listed infrastructure and utilities sector in recent years has prompted Treasury Group (TRG) to develop a funds management business specialising in the fast growing asset class.

The boutique, known as RARE (Risk Adjusted Returns to Equity) Infrastructure, aims to achieve both superior medium to long-term returns and attractive risk return characteristics.

A portfolio of 30 to 60 stocks will be selected from over 40,000 global listed securities, following a bottom-up value assessment.

Distribution of the fund will initially take place through TRG head of distribution Rob Sullivan.

However, a company spokesperson indicated that a pooled fund would be available in due course.

TRG chairman Mike Fitzpatrick said the RARE initiative was consistent with the group’s strategy of building a portfolio of best-of-breed boutique managers.

“We now have an investment in an independent fund manager specialising in one of the fastest growing asset classes in the world today,” he said.

“It is obvious that there is no shortage of investment opportunities for RARE, with market capitalisation of its targeted assets exceeding US$1 trillion as at June, 2006.”

The company also expects significant issuances to occur globally during the next decade, as governments continue to privatise utilities and renew existing infrastructure.