Legg Mason IF RARE Global Infrastructure Income Fund Class X Accumulation
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.See all Money Observer rated funds
|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 %|
|United States||20.45 %|
|United Kingdom||18.27 %|
|Latin America||8.82 %|
Data provided by Morningstar.
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