Principal Funds chooses the RARE Infrastructure Income Strategy for their Diversified Real Asset Fund


US-based global fund manager Principal, with over $US142 billion in funds under management, has chosen Sydney based RARE Infrastructure to manage a sleeve of Principal’s Diversified Real Asset Fund.

Principal’s Diversified Real Asset funds currently exceed USD4 billion under management.

Principal Funds has a multi-manager approach, and RARE will join other managers including BlackRock, BNP Paribas, Boston Company, Credit Suisse, Macquarie, Pictet, Principal Global Investors, Symphony, and Tortoise in Principal’s Real Asset suite of managers.

RARE’s Chief Operating Officer Carl McGann said Principal’s selection of RARE to provide specialist global listed infrastructure portfolio management was an endorsement of RARE’s proven expertise in this specialist sector and the firm’s international reputation.

“We are delighted to be working with such a significant and successful manager as Principal,” McGann said.

RARE’s Infrastructure Income Strategy aims to provide risk-adjusted returns to equity with a return bias towards income, by investing in a diverse range of global listed infrastructure securities across a number of infrastructure sub-sectors and across different geographic regions.

“In most major markets, infrastructure is being seen as an increasingly important sector for portfolio construction for both growth and income. At the same time, there is a global focus on the need for both new assets and renewal of existing assets in developed and developing economies alike.

“Growth in developed markets will likely be driven by refurbishing existing infrastructure, while demographic factors such as urbanization and population growth are more likely to drive growth in emerging markets” commented McGann.

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