Legg Mason integrates RARE Infrastructure Value Fund into its global fund range

Legg Mason announces the merger of the RARE Infrastructure Value Fund into the Legg Mason flagship cross-border UCITS fund range, Legg Mason Global Fund plc (’LMGF’).
The fund, managed by RARE Infrastructure (‘RARE’), will now be known as the “Legg Mason RARE Infrastructure Value Fund”. The fund will continue to be managed in the same way, aiming to provide investors with attractive capital and yield growth by investing in infrastructure related securities from around the world.
The merger follows Legg Mason’s acquisition of Sydney-based RARE Infrastructure in October 2015, which saw Legg Mason take a 75% ownership stake in the business. RARE provides expertise in global listed infrastructure, adding an experienced manager in a growing asset class to Legg Mason’s affiliate partners.
Established in 2006, RARE is one of the largest wholly dedicated asset managers in the infrastructure asset class category, managing USD 6.1bn[1] of assets for institutional and retail clients. The firm’s investment approach is centred on delivering risk adjusted returns on equity. Their investment process focuses on detailed analysis of cash flows of infrastructure assets that can provide predictable, growing returns combined with underlying macro and economic valuation drivers.
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 USD 277.8[2] million 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.”
[1] According to RARE Infrastructure, assets stood at USD $6.1bn as at 30 June 2016.
[2] As at 30 November 2016