ClearBridge Investments launches the Unhedged Infrastructure Income Fund
Charles Hamieh
ClearBridge Investments[1], part of Franklin Temepleton, has announced the launch of an additional fund to their suite of global listed infrastructure funds with the introduction of an unhedged version of the high performing ClearBridge RARE Infrastructure Income Fund.
Both ClearBridge RARE Infrastructure Income Funds – Hedged and Unhedged – aim to provide investors with long-term inflation-linked capital growth over an economic cycle with a focus on providing reliable income targeting 5% p.a., net of fees. This is achieved by investing in a range of global listed infrastructure securities such as gas, electricity and water utilities, renewables, toll-roads, airports, rail and communication infrastructure, all of which traditionally exhibit predictable income streams and income growth.
The Income Fund typically has a defensive tilt, lower beta and correlation with global equities, and can offer diversification benefits to a broad portfolio.
The return target is to outperform the OECD G7 Inflation Index by 5.5% p.a. over an investment time frame of five years, net of fees.
In the 12 months to May 31, 2021 the ClearBridge RARE Infrastructure Income Fund (Hedged) has returned more than 14% p.a. and has posted an annual average return since inception in 2009 of 11.2% p.a., exceeding the benchmark by 4.4% p.a..[2] Currently the hedged version of the Fund manages $403 million while the recently launched unhedged version manages $284 million.
ClearBridge Investments Portfolio Manager Charles Hamieh said: “The decision to create an unhedged version of the popular infrastructure income fund reflects feedback from both institutional and retail investors who demanded greater choice and flexibility to invest in our funds and traditionally manage their own currency risk.
“The new unhedged fund has a minimum investment of $20,000 AUD and is accessible via most major investment platforms used by the advisory industry.
“The fund will typically invest in 30 to 60 stocks spread across geographic regions both in the developed and emerging markets,” he said.
The top five stock holdings at present are: Atlas Arteria (Asia Pacific, Toll Roads); Exelon Corp (US Electric); Clearway Energy (US/Canada, Renewables); SSE (Western Europe, Electric) and Sydney Airport (Asia Pacific, Airports).
The ClearBridge RARE Infrastructure Income Fund was a winner at the 2020 Zenith Fund of the Year Awards and the 2021 Money Management Fund Manager of the Year for Infrastructure Securities.
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[1] “ClearBridge Investments” refers to ClearBridge Investments Limited (AFSL 307727) (formerly known as RARE Infrastructure Limited) and its authorised representative ClearBridge Investments, LLC.
[2] Fund performance is net of fees, assuming all distributions are reinvested and before tax. Past performance is not indicative of future performance.
