This prestigious award was launched in 2019 to recognise outstanding industry leaders in Funds Management and was presented to Mr Elmslie on 15 October at the Annual Zenith Fund Awards.

Mr Elmslie is a pioneer of global listed infrastructure investing, co-founding RARE Infrastructure, with Nick Langley, which launched the first global infrastructure strategy for Australian investors in 2006.

Presenting the award, Bronwen Moncrieff , General Manager and Head of Research, Zenith Investment Partners added: “Richard’s vision to provide a portfolio of listed infrastructure assets to investors and his contribution to the infrastructure sector has paved the way for the growth in the industry we know today.”

Mr Elmslie has 40 years of investment industry experience, of which, for 31 years, he dedicated to the infrastructure industry.

He has played a pivotal role in leading the privatisation of the asset class worldwide, including the privatisation of Australia’s major airports, most notably Sydney, Melbourne and Brisbane, the Victorian electric and gas sector, and the UK water and Scottish electric industry.

His passion and expertise was influential in establishing listed infrastructure as an attractive asset class for investors.

After successfully integrating with New York-based global equities manager ClearBridge Investments, Mr Elmslie expressed how delighted he was that the team at ClearBridge Investments is now managing a range of specialist listed infrastructure strategies for investors worldwide.

ClearBridge Investments also won the Infrastructure category at this event for the second year.

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[1] “ClearBridge Investments” refers to ClearBridge Investments Limited (AFSL 307727) (formerly known as RARE Infrastructure Limited) and ClearBridge Investments, LLC

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Where are the US opportunities for growth?

Notes from RARE Infrastructure

More spend on airports, roads, rail and water is likely to flow from the Trump Administration’s infrastructure reform. The acquisition of publicly owned assets by listed infrastructure companies is another potential outcome.

The White House’s ‘Legislated Outline for Rebuilding Infrastructure in America’ is part of the Budget proposal for the fiscal year from October 1 2018 – September 30 2019.

The White House is seeking long-term reform in how projects are regulated, funded, delivered and maintained. President Donald Trump also wants Congress to approve a $200 billion federally funded investment to leverage at least $1.5 trillion in infrastructure investment. The breakdown^[1] of this planned $200 billion spend covers:

• $100 billion Incentive Program to ‘encourage State, local, and private investment by awarding project sponsors incentives for demonstrating innovative approaches that will generate independent revenue, reduce project costs and timelines, and improve performance’.
• $50 billion Rural Infrastructure Program to ‘enable rural America to address its unique infrastructure challenges, rebuilding and modernising bridges, roads, water and wastewater assets, water resources, waterways, power generation assets and broadband.’
• $20 billion Transformative Projects Program to ‘spur competition around bold, innovative, and truly transformative projects that could dramatically improve future infrastructure, become self-sustaining without Federal support, and have a significant impact on the Nation, a region, State or metropolitan area.’
• $20 billion Finance Programs ‘to address a broader range of infrastructure needs, giving State and local governments increased opportunity to finance large-scale infrastructure projects under terms that are more advantageous than in the financial market.’
• $10 billion Federal Capital Revolving Fund. ‘The proposal is to establish a mandatory revolving fund to finance purchases, construction or renovation of federally owned domestic civilian real property.’

These funding programs subsidise some of the design, construction or financing costs associated with developing infrastructure projects. As such, if this proposed budget is approved and the planned spend comes to fruition, certain segments of the listed infrastructure market that have ‘shovel-ready’ projects are well positioned to take advantage of the above-mentioned programs.

The plan also spells out how Trump Administration endeavours to fix underlying incentives, procedures, and policies to spur better and quicker infrastructure decisions and outcomes, across a range of sectors, namely rail, airports, water and social infrastructure.

We expect the proposed incentives will attract global capital and expertise to the US market, particularly within the toll road and airport segment which includes many operators that have been active in the US over the last decade.

These operators will bring experience in successfully developing and executing similar projects around the world and have the skill sets required to deliver these projects on time and on budget. Within the toll road sector, for instance, Spanish infrastructure operator Ferrovial and Australian toll road operator Transurban, have proven experience in successfully building and operating US toll roads.

By Nick Langley, Co-Chief Executive Officer, Co-Chief Investment Officer, and Portfolio Manager and Richard Elmslie, Co-Chief Executive Officer, Co-Chief Investment Officer and Portfolio Manager

[1] ‘Legislative Outline for Rebuilding Infrastructure in America’, The White House. https://www.whitehouse.gov/wp-content/uploads/2018/02/INFRASTRUCTURE-211.pdf Note, all currency references are USD denominated.

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