Legg Mason is launching a global infrastructure fund to deliver income in today’s low yield environment.
The Legg Mason IF Rare Global Infrastructure Income fund will launch in July and aims to deliver 5 per cent yield each year under current market conditions.
The fund is managed by Sydney-based infrastructure specialist Rare Infrastructure, which is owned by Legg Mason. The fund will hold between 30 and 60 stocks in the energy, utilities, transport,= and communications sectors, in both developed countries and emerging markets.
Head of UK sales at Legg Mason Adam Gent says the global infrastructure market is expected to “more than double” by 2030.
“Investors are increasingly recognising the benefits of the global listed infrastructure asset class. And, with traditional sources of yield at historic lows, now is a compelling time to launch a strategy that can offer a high sustainable income whilst also providing portfolio diversification, inflation protection, and a strong risk-return profile.”
Rare’s co-chief executives Nick Langley and Richard Elmslie will mange the fund, which has an annual management charge of 0.75 per cent for a founder’s share class with an annual charge of 0.4 per cent.
The fund will be available to UK investors via an onshore fund range.