The RARE Infrastructure Income Fund invests in listed companies whose business is the operation and maintenance of infrastructure assets.

The Fund invests in infrastructure assets such as electricity, gas, water, toll roads, airports, rail, ports and communication assets.

The objective of the fund is to provide regular and stable income plus capital growth with a specific focus on minimising the volatility of returns and a target net distribution yield of 5% p.a.

The exposure to infrastructure is designed to complement the portfolio's exposure to property and provide investors with a diversified source to inflation-linked income.

In our view it is likely that based on current valuations infrastructure assets may be subject to sensitivities around changes in interest rates, more so than they have been in the past, which investors may want to be aware of.