A BRIEF HISTORY

In comparison to established assets classes such as equities and property, infrastructure is a relatively young asset class.

Lighthouse Infrastructure executives have been at the forefront of Australia's prominence as leaders in developing, funding and structuring key infrastructure assets both in Australia and overseas. Australia established numerous investment funds, such as Hastings' AIX in 1997, to invest in infrastructure assets.

The ability of infrastructure assets to provide investors with sound (and often tax-advantaged) returns has been well documented, identified and - most importantly - readily accepted by the investment community.

Historically, governments were almost solely responsible for infrastructure investment. Some of Australia's largest and most iconic infrastructure assets - such as Snowy Mountains Hydro Scheme, the Sydney Harbour Bridge and the Westgate Bridge - were funded almost solely by state and federal governments.

Today, governments are continuing to undertake major infrastructure projects that are critical in ensuring that cities and rural communities - both in Australia and globally - are able to function well, both now and into the future. Examples include major transport, communications and utilities projects.

Over the past few decades however, governments have begun to change the way in which these infrastructure projects and assets are funded (in other words, paid for). Governments have progressively looked towards the private sector to help fund these large and often very capital intensive projects (as opposed to taxpayers paying for the construction and maintenance of these assets through general taxation revenue).

This has resulted in strong growth in both the number and market capitalisation of infrastructure investment vehicles listed on the ASX (which now represent about 5% of the Australian share market by value) and recognised international stock exchanges.

This, in turn, has provided astute investors with the ability to invest in an asset class that has typically been beyond their reach. In particular, while infrastructure investment has traditionally been reserved for large corporations and consortia (because of the vast amounts capital required), the past decade has seen a rapid increase in the number of listed infrastructure investments. Today, infrastructure assets are becoming much more widely held by retail investors who are attracted by relatively stable and tax-effective distributions and the potential for long term capital growth.

Lighthouse is a specialist infrastructure fund manager with significant experience and expertise in infrastructure asset management, and intends to release a range of listed and unlisted infrastructure funds that seek to deliver to investors the many benefits that well-managed infrastructure investments can provide.