American asset manager Legg Mason has introduced an exchange-traded fund (ETF) that will offer income and capital appreciation through global infrastructure securities across developed and emerging markets.
The newly launched Legg Mason Global Infrastructure ETF will be sub-advised by the company’s affiliate RARE Infrastructure.
Infrastructure investments are expected to grow 124%, to $110 trillion by 2030, according to the company.
Portfolio Manager of the fund Charles Hamieh said: “We see many attractive long-term opportunities in listed infrastructure. Fundamental values remain strong in many infrastructure subsectors, with favorable operating conditions and predictable cash flows. Many companies have had strong earnings and dividend growth and have had lower long-term correlations to other asset classes which can lead to diversification benefits and downside management.
“We have drawn on our specialist knowledge and experience to design the Legg Mason Global Infrastructure ETF. This rules based investment vehicle dynamically weights between two broad categories of utilities and economically-sensitive assets in seeking to achieve strong risk adjusted returns to equity through an economic cycle.”