Legg Mason, an asset manager headquartered in Baltimore, will launch a global infrastructure fund in July 2016.
The vehicle will aim to invest in 30 to 60 listed stocks spanning energy, utilities, transport, and telecoms in both developed and emerging markets.
It will be managed by RARE Infrastructure, the Sydney-based fund manager Legg Mason bought in October 2015 for $205 million. Five months before the purchase, Infrastructure Investor reported that RARE was considering a move to Europe in a bid to engage with UK and European pensions.
Founded in 2006, the firm managed $6.3 billion as at the end of April.
Nick Langley and Richard Elmslie, RARE’s co-chief executives, will be looking after the fund, which will aim to deliver both capital growth and growing income. The offering, available as part of Legg Mason’s UK onshore fund suite, will target yield of 5 percent per annum.
It will carry a yearly management charge of 0.75 percent.
RARE is only one of the alternative asset managers recently acquired by Legg Mason. Last January, the $707 billion firm acquired three investment shops respectively focused on real estate, hedge funds and exchange-traded funds in the space of a week.