Premier is to convert its Global Utilities Income fund into a flexible infrastructure strategy, in a move the asset manager said should allow greater opportunity for income and growth.
The £37m fund - managed by Claire Long and James Smith - currently invests solely in global utilities stocks focused on water and energy, and yields around 5 per cent.
However, the firm said it would seek approval to expand its remit to include other infrastructure assets such as travel infrastructure companies, telecommunications and social infrastructure stocks.
This, Mr Smith said, would "further enhance capital and income returns".
Proposals to change the mandate and rename the fund Global Infrastructure Income will be put to shareholders later this month.
The move to cover general infrastructure equities comes amid a spike in interest from fund buyers.
Expectations for fiscal expansion via infrastructure projects have increased since the arrival of new governments in the US and UK. A global infrastructure income strategy launched by Legg Mason last July has already raised £278m. Furthermore, Miton launched an infrastructure strategy last month.
Premier said the fund would remain focused on global utilities stocks for the "foreseeable future" but it remained in the long-term interest of investors to use a "broad range of infrastructure assets".
Premier chief executive Mike O'Shea said: "The strong demand for income should continue to lead to a strong demand for alternative sources of income generation for client portfolios, including from infrastructure assets."
Mr Smith added: "By widening our investment pool, but retaining our focus on income-generating asset-backed companies, we will seek to exploit the many exciting investment opportunities available in the global infrastructure sector.”
The Premier Global Utilities Income fund has been managed by Mr Smith and Ms Long since 2012. Over three years it returned 44 per cent, above the 37 per cent average for the IA Global Equity Income sector.
