Investments  

Foresight launches global infrastructure fund

Foresight launches global infrastructure fund

Foresight has launched a global infrastructure fund, which will invest in infrastructure and renewable energy assets that are listed on global stock markets.

The fund has a target return of 3 per cent above UK CPI inflation, which is currently 2.1 per cent.

Investments must conform to the UN sustainability goals, made up of a set of 10 principles.

This means 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 principles of the United Nations Global Compact for business.

As part of its marketing, the company spoke with 140 financial advisers, with 80 per cent of those stating that they expect to increase allocations to infrastructure investments in the year ahead.

Nick Scullion, head of Foresight Capital Management and lead fund manager of the 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."

Tom Sparke, investment director at GDIM in Cambridge, said: "The UK infrastructure fund from Foresight has been an impressive success and this fund looks as though it will follow suit.  

"Its investment remit is one that is in high demand at present and from both an ethical and defensive standpoint this will be an intriguing prospect for investors who are looking for lower-risk exposure to equities.  

"The wider scope of a global fund may increase the risk-base somewhat but the potential opportunity set is also increased.

"This fund looks like it could be a useful source of diversification for a portfolio and the yield will be a welcome aspect too."

david.thorpe@ft.com

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.