Premier Asset Management is creating a Global Infrastructure Income fund by changing the name and investment remit of the Global Utilities Income fund.
The new fund will be unveiled on 8 May, subject to shareholder approval on 28 April.
The £37.1m fund launched in November 2010 and has been managed by James Smith since June 2012 with Clare Long as deputy manager. It currently invests in global utility infrastructure assets, namely the energy and water sectors as well as clean and waste water treatment, gas and electricity transmission, renewable energy and conventional power generation.
Premier says the fund will continue to focus on global utility infrastructure for “the foreseeable future”, but over the long term it will diversify into other infrastructure assets, such as airports, toll roads, sea ports, telecommunications infrastructure, rail infrastructure and social infrastructure assets, such as hospitals and prisons.
Over one year the fund has returned 27 per cent compared to the 20 per cent sector average, FE data shows.
Premier CEO Mike O’Shea says: “Utility related investments are core infrastructure
assets, but broadening the investment universe is a good addition to the existing portfolio for investors, providing increased diversification for the portfolio, including the income, as well as providing additional income and growth potential.
“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. Premier has a proven investment team capability for managing the different infrastructure sectors covered by the existing fund, and they have the investment experience and skills to cover the broader range of infrastructure sectors included in the proposed new fund.”
James Smith adds: “We have delivered excellent returns to our investors over recent years, but we believe we can further enhance both capital and income returns by expanding our investment universe into other infrastructure sectors. 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.”