The US-headquartered asset management company has added to its UK onshore fund range.

Legg Mason is to launch a global infrastructure income fund targeting high income and long-term capital growth. It will be managed by the company's Australian subsidiary, RARE Infrastructure.

Due to launch in July, the Legg Mason IF RARE Global Infrastructure Income Fund will hold between 30 and 60 stocks, investing in listed infrastructure companies, including those in the energy, utilities, transport, and communications sectors, in developed and emerging markets around the world. It aims to achieve an annual yield of around five per cent.

The fund will carry an annual management charge of 0.75 per cent (X share class). At launch, there will be a founder’s share class with an annual management charge of 0.40 per cent (S share class).

RARE, a Sydney-based investment management company, focuses exclusively on global listed infrastructure. It was acquired by Legg Mason in October last year. 

“Investors are increasingly recognising the benefits of the global listed infrastructure asset class. And, with traditional sources of yield at historic lows, now is a compelling time to launch a strategy that can offer a high sustainable income whilst also providing portfolio diversification, inflation protection, and a strong risk-return profile,” said Adam Gent, head of UK sales at Legg Mason.

“With the global infrastructure market expected to more than double in size by 2030, the asset class is a secular growth story, and the Legg Mason IF RARE Global Infrastructure Income Fund will be positioned to benefit directly from this growth by investing in strong income-paying infrastructure companies, enabling it to meet client needs for both capital returns and income.”

New York-listed Legg Mason had assets under management of $707.1 billion as of the end of April 2016.