Foresight Group has launched the FP Foresight Global Real Infrastructure Fund.
The fund has received FCA regulatory approval and will be actively managed, and will invest directly into publicly listed companies that own and operate real infrastructure or renewable energy assets globally.
It is targeting a total return of more than 3% per annum above the rate of UK inflation (measured by UK CPI).
Foresight told GBI Magazine that sustainability is a key consideration in the investment team’s stock selection process. The fund will invest only in the shares of companies that the team assesses deliver a net social or environmental benefit and comply with the ten principles of the United Nations Global Compact for business.
Ahead of the Fund’s launch, Foresight conducted research with 144 advisers that revealed a strong appetite for global infrastructure amidst fears of a sustained downturn, Brexit uncertainty and market instability.
An overwhelming majority (80%) of advisers now expects to see more global infrastructure funds recommended to clients as the asset class continues to become more mainstream. Some 66% of advisers expect to see clients’ allocations to global infrastructure increase over the next three years – more than double the number since 2017 when just 32% of advisers predicted it would become more popular.
GRIF will draw from an investible universe of 91 listed renewable and infrastructure investment companies from a global pool of 5,700 companies. The Fund will invest in a diverse portfolio of companies that own and operate assets ranging from solar power and geothermal generation plants to medical office buildings and storage facilities that have strong public sector counterparties and stable, predictable demand. These listed companies have a combined market capitalisation of £180bn and have grown in number by 259% since 2010.
Nick Scullion, Head of Foresight Capital Management and lead Fund Manager of the new global fund said: “The launch of the new FP Foresight Global Real Infrastructure Fund marks an exciting evolution in the way that investors can access the infrastructure asset class. The Fund invests exclusively in the shares of companies that own and operate physical infrastructure assets and contracts that typically benefit from long-dated, index-linked, government backed cash flows that have historically shown low volatility and low correlation to equity markets.
“The global approach provides access to assets in geographies that benefit from these attractive characteristics while providing diversification across asset type, regulation and sovereign risk, and currencies from multiple developed markets. The Fund is designed to act as a shock absorber to bring stability to portfolios during a period of anticipated volatility.”
Foresight is an independent infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 35 years.
It has £2.9bn of Assets Under Management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes, Venture Capital Trusts and Inheritance Tax Solutions using Business Property Relief.