London-headquartered Legg Mason has integrated the RARE Infrastructure Value Fund, managed by RARE Infrastructure, into its flagship cross-border Ucits fund range, Legg Mason Global Fund plc.
The fund, investing in infrastructure related securities across the world, will now be known as the “Legg Mason RARE Infrastructure Value Fund” with no changes in the process.
The merger follows Legg Mason’s acquisition of Sydney-based RARE Infrastructure in October 2015, after which Legg Mason became the majority shareholder of the business with a 75% ownership stake.
Established in 2006, RARE managed $6.1bn (€5.75bn) of assets for institutional and retail clients as of end of October 2016.
Commenting on the merger, Jaspal Sagger, head of International Product at Legg Mason, said: “The acquisition of RARE formed part of our ongoing commitment to provide solutions to clients by offering next generation investment products with access to a growing asset class managed by experts in this field.
“Following the successful launch in July this year of the UK domiciled Legg Mason RARE Global Infrastructure Income Fund, which has gathered $277.8m (€262.1m) since launch, the merger allows us to expand our infrastructure offering to our cross-border investors.”
Nick Langley, co-CEO and CIO, RARE Infrastructure, added: “We pride ourselves on being infrastructure experts, taking a longer term approach to benefit from the attractiveness of the assets. Infrastructure is a secular story with nations globally starting to recognise it as way of increasing aggregate demand as well as future productivity. It also provides excellent diversification benefits, as there is low correlation to global bonds and low beta sensitivity to global equities.”
Legg Mason had assets under management of $716.3bn (€675.9bn) as of 31 October 2016.