Investors have helped send AUM in a Legg Mason infrastructure fund to over £140m just a month after launch.
Legg Mason IF RARE Global Infrastructure Income fund, managed by infrastructure specialist RARE’s co-CEO and CIOs Nick Langley and Richard Elmslie, focuses solely on the listed infrastructure space, with the majority of assets invested in essential utilities such as water, gas and electricity.
The globally-diversified fund will target a high level of income, expected to be 5% per annum, and a real total return of G7 inflation plus 5.5% per annum, over a market cycle.
As well as focusing on infrastructure assets within the ‘essential services’ space which are more insulated from shifts in global growth, RARE’s fund is also diversified globally, with exposure to North American and Asia Pacific markets, as well as European-listed infrastructure assets.
It also offers the chance to benefit from some of the fastest growing regions around the world, with up to 20% invested in developing countries.
Thomas Becket, CIO at Psigma, said the fund helped reduce the beta of his multiasset portfolios, as well as providing an attractive yield.
“The global economy has suffered a series of setbacks in recent months, and many assets now look either very expensive, or vulnerable to a correction,” he said.
“In that environment, to be able to access an alternative source of income with both an attractive yield and good liquidity is very compelling.”