The global asset management firm is offering hedged share classes on the new fund to allow investors to limit their exposure to currency movements.

Legg Mason has launched sterling hedged share classes for its £170 million ($225 million) Legg Mason IF RARE Global Infrastructure Income fund, following its launch last month.

The new hedged share classes will sit alongside the existing sterling share classes. They will provide investors with exposure to infrastructure equities while seeking to mitigate the impact of currency fluctuations.

The globally-diversified fund focuses on the listed infrastructure space, with the majority of assets invested in essential utilities such as water, gas and electricity. The portfolio targets a high level of annual income, expected to be around 5 per cent under current market conditions, and a real total annual return of G7 inflation plus 5.5 per cent over a market cycle.

It is managed by RARE’s co-chief executives and co-chief investment officers, Nick Langley and Richard Elmslie. RARE is an alternative asset manager, focused on the infrastructure asset class.

“The fund aims to seek out the best income opportunities from a universe of listed global infrastructure stocks, and currently circa 90 per cent of the fund is invested in stocks overseas,” said Adam Gent, head of UK sales at Legg Mason. 

“The hedged share class offers investors flexibility and a means to access the attractive income streams offered by global listed infrastructure, while protecting themselves from exchange rate movements.”

Legg Mason, which is listed on the New York Stock Exchange, had assets under management of $757 billion as of 31 July 2016.