Legg Mason has launched a global infrastructure income fund for UK investors seeded with £26 million (€30.5 million) of investments.
The fund is managed by Legg Mason’s Sydney-based specialist subsidiary, Rare Infrastructure, and targets income of about 5% per annum.
The Legg Mason IF Rare Global Infrastructure Income fund will focus on listed infrastructure stocks in developed markets, but has a maximum 20% exposure to emerging markets.
The vehicle will primarily invest in providers of ‘essential services' such as water, gas, and electricity companies, which are less sensitive to macro shocks, the firm says. It will hold 50-90% in regulated utilities, up to 45% in transport assets and up to 20% in both communications assets and companies focused on community/social infrastructure.
A spokesperson for firm said the launch was driven by UK client demand for a high yielding, low volatility fund.
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