Legg Mason has announced the launch of a new global infrastructure fund aimed at offering UK investors above inflation returns.
The fund, which will be managed by the group’s Sydney-based specialist asset manager RARE Infrastructure’s co-CEO and CIOs Nick Langley and Richard Elmslie, alongside senior investment analysts and portfolio managers Shane Hurst and David Maywald.
It focusses exclusively on listed infrastructure, holding between 30-60 infrastructure stocks from the RARE 200 and the RARE EM 150 universe. It aims to achieve a real total return exceeding G7 inflation by 5.5% per annum.
In terms of sector allocation, the fund will primarily invest in providers of ‘essential services’ such as water, gas, and electricity companies. It will hold 50–90% in regulated utilities, up to 45% in transport assets and up to 20% in communications assets, as well as up to 20% in companies focused on community/social infrastructure.
Adam Gent, head of UK Sales at Legg Mason, comments on the launch: “The enthusiasm from clients for us to proceed with the launch of the fund as planned following the Brexit vote has highlighted the demand for investment opportunities that complement their portfolios. We had over £26 million in assets under management invested at launch, as well as strong interest in the upcoming sterling-hedged share class.”