Private equity asset manager Foresight has launched the FP Foresight UK Infrastructure Income Fund.
It is actively managed and will invest in UK listed renewable energy and infrastructure fund/investment company equities and bonds. It will target an annual income of 5% per annum with dividends paid quarterly.
Available on a variety of platforms and wraps, it has a minimum investment of £1,000, or £100 per month for regular savings, and comprises one share class for both retail and institutional investors with the option for either income, or accumulation.
Foresight believes that renewable energy and infrastructure are attractive asset classes as they are characterised by stable and predictable demand, high barriers to entry and long term contracted revenue streams. UK listed renewable energy and infrastructure funds / investment companies also benefit from protection from inflation as a high proportion of underlying asset revenues are directly linked to inflation.
Ahead of the fund launch Foresight carried out research with financial advisers which revealed that three quarters (75%) are bullish about the investment outlook for UK infrastructure assets and the majority (59%) expect to see increasing demand amongst clients for exposure to the sector through SIPPs and ISAs over the next five years.
The research further revealed that infrastructure is poised to become an increasingly popular asset class for investors as it mitigates four of the biggest headwinds facing client portfolios. These were identified as volatility by more than half (56%) of advisers, a market correction (49%); inflation (42%) and interest rate rises (28%). Indeed three in ten (32%) advisers are looking to increase their clients’ allocation to the asset class over the next three years.
Partner at Foresight Jamie Richards said: “The new FP Foresight UK Infrastructure Income Fund enables investors to capitalise on a thriving energy sector, which offers numerous investment opportunities across generation, transmission and distribution technologies. The global decarbonisation agenda will lead to a growing reliance on renewable energy, which is becoming cheaper to produce and easier to store.
“At Foresight, we have a specialist focus on energy infrastructure combined with a tradition of innovation in creating investment solutions that respond to investors’ needs. We manage funds for more than 22,000 private investors and for some of the world’s leading financial institutions. We’re excited to be launching this infrastructure income fund which we expect to have broad appeal.”