Foresight Group has launched an infrastructure income fund on the back of research canvassing advisers on their outlook for the sector.
FP Foresight UK Infrastructure Income fund is actively managed and invests in UK-listed renewable energy and infrastructure fund and investment company equities and bonds. It targets an annual income of 5 per cent each year with dividends paid quarterly.
The fund aims to provide higher returns with lower volatility than the FTSE All Share.
Minimum investment is £1,000, or £100 per month for regular savings, with income and accumulation options.
A survey by the independent infrastructure and private equity asset manager found that 75 per cent of advisers are bullish about the investment outlook for UK infrastructure assets and 59 per cent anticipate increasing demand from clients for exposure to the sector over the next five years.
Jamie Richards, partner at Foresight, says: “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.
Philip Payne, director of Mulberry Wealth Management, adds: “Infrastructure has historically been regarded as the domain of institutional investors. However, we have found the asset class becoming increasingly attractive for our clients as more opportunities open up. Investors find the predictable revenue streams and stable returns compelling, particularly in times of uncertainty when markets are rocked by volatility. Foresight has a strong track record of innovation and infrastructure investment and we expect our clients will find the fund’s target yield of 5 per cent particularly appealing”