Legg Mason IF RARE Global Infrastructure Income Fund Class X Accumulation

Specialist

New for 2020. Delivers income from shares in infrastructure companies  

Delivering a decent income stream from a portfolio of infrastructure equities is the primary objective of this newcomer to our Rated Funds. It yields a robust 6% and pays income quarterly.

Legg Mason IF Rare Global Infrastructure Income seeks to outperform the OECD G7 Inflation index by 5.5% over an investment timeframe of five years. It has done this by an impressive margin over the past one and three years, and at the same time outperformed the global equity income peer group average.

We like the fact that the fund is managed by four investment professionals at Rare, a specialist investment manager focused exclusively on global listed infrastructure. Established in 2006, it aims to identify and invest in high-quality listed infrastructure assets with the goal of delivering strong absolute returns over an investment cycle.

The fund is concentrated in less than 40 holdings but is well diversified globally. The largest slug of assets is in North America, followed by the UK and Australia.

At a sector level, electricity accounts for more than half of assets and gas for a fifth. Against a backdrop of stable growth and favourable global liquidity, the managers believe conditions should be constructive for infrastructure assets. Monthly data and forward indicators continue to show improvement in macroeconomic conditions, supported by more constructive developments in US/China trade relations and policy easing. While the recovery in global growth is likely to be modest, the risk of a recession has receded. What’s more, the bar for any renewed monetary tightening seems high.

Narrative and ratings content all as of January 2020.

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Name
Legg Mason IF RARE Global Infrastructure Income Fund Class X Accumulation
Manager
Legg Mason Investment Funds Limited
Type
Open Ended Investment Company
ISIN
GB00BZ01WV25
Sector
Global Equity Income
Launched
01/07/2016
OCF
0.94 %
Risk Rating
3
3 Year Sharpe
1.03
3 Year Alpha
1.80
Yield
4.8 %
Benchmark
OECD Total Inflation EUR
To provide investors with an income comprised of dividends with a secondary investment objective of long-term . The Fund seeks to achieve its objective by investing at least 80% of the Fund’s net asset value in a diverse range of global listed infrastructure securities across a number of infrastructure sub-sectors such as gas, electricity and water utilities, toll-roads, airports, rail and communication infrastructure and across different geographic regions, under normal market conditions.
Holding %
Hydro One Ltd 4.86 %
Red Electrica Corporacion SA 4.67 %
National Grid PLC 4.17 %
Enbridge Inc 3.96 %
Dominion Energy Inc 3.94 %
Snam SpA 3.93 %
United Utilities Group PLC 3.82 %
Emera Inc 3.57 %
Transurban Group 3.47 %
AusNet Services Ltd 3.17 %
Region %
United States 20.45 %
United Kingdom 18.27 %
Canada 18.14 %
Eurozone 15.64 %
Australasia 15.60 %
Latin America 8.82 %
Sector %
Utilities 72.91 %
Energy 12.67 %
Industrials 11.81 %
Name
Legg Mason Investment Funds Limited
Address
EC2M 3AB, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Daniel Chu
Joined 10/01/2019

Data provided by Morningstar.

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