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Australian firm targets UK with GEM and infrastructure funds
by Elsa Buchanan on Sep 30, 2013 at 14:28
Sydney-based Rare Infrastructure is the latest overseas firm to enter the UK market, with the double launch of an infrastructure value fund, alongside an emerging markets portfolio targeting UK wealth managers.
The Ucits fund will replicate the Aus$160 million (£94.4 million) Rare Infrastructure Value and Aus$ (£14.1 million) Emerging Market strategies the firm already manages in Australia.
US railroad stock Norfolk Southern and transportation companies CSX and OHL Mexico are set to feature as picks.
The fund targets a yield of 3.5%-5% and a total return of 10%-11%. Since launch in August 2006, the fund has returned 9.5% per annum in US dollar terms, compared to a 3.1% rise by the S&P Global Infrastructure Index.
The Rare Emerging Markets fund, which is also run by Elmslie and Langley, focuses on 25 to 60 stocks with exposure to high GDP growth, such as Dubai-based logistics firm DP World and Indonesian highway corporation Jasa Marga.
The fund will target a yield of 3%-4%. The strategy has returned 13.6% in US dollar terms since inception in March 2008, compared to a 0.6% rise in the MSCI Emerging Markets Index.
The annual management charge (AMC) for the Infrastructure Value fund stands at 1%, while the emerging market fund has an AMC of 1.2%.
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on Dec 06, 2013 at 14:28