Legg Mason has launched a sterling-hedged share class for its £170m Rare Global Infrastructure Income fund.
The share class aims to give investors exposure to infrastructure assets while limiting currency fluctuations given the fact that the fund, which launched last month, invests in global stocks.
The portfolio, managed by Rare’s co-chief executive officers and co-chief investment officers Nick Langley and Richard Elmslie, targets a high level of income, estimated to be about 5 per cent, and a total return of G7 inflation plus 5.5 per cent.
Adam Gent, head of UK sales at Legg Mason, said: “The fund aims to seek out the best income opportunities from a universe of listed global infrastructure stocks, and currently 90 per cent of the fund is invested in stocks overseas.
“The hedged share class offers investors flexibility and a means to access the attractive income streams offered by global listed infrastructure, while protecting themselves from exchange rate movements.”
The fund is the first infrastructure offering by Legg Mason for the UK retail market, launched after the company acquired Australian boutique Rare Infrastructure in October 2015.
Infrastructure products have become a popular choice among fund selectors after UK chancellor Philip Hammond joined the ranks of politicians suggesting that fiscal stimulus, as opposed to reliance on central bank monetary policy, is now under serious consideration for the first time in several years.
