Foresight to invest in renewable energy and infrastructure with its new Fund

Foresight Group LLP (Foresight) has launched the FP Foresight UK Infrastructure Income Fund (Fund) today (December 4).

The Fund, which has received FCA regulatory approval, is actively managed and will invest in UK listed renewable energy and infrastructure fund and investment company equities and bonds.

It is said to target an annual income of five per cent per annum with dividends paid quarterly.

Philip Payne, director of Mulberry Wealth Management, said: “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 five per cent particularly appealing.”

Available on a variety of platforms and wraps, the Fund has a minimum investment of £1,000 or £100 per month for regular savings, and comprises one share class for both retail and institutional investors with the option for either income or accumulation.

Its model portfolio is said to deliver higher returns and lower volatility than the FTSE All Share. In the last two years, the total return for the Fund’s model portfolio was 24 per cent vs 20.7 per cent for the FTSE All Share.

The UK has seen growth in renewable energy and infrastructure investment over the last five years that is expected to continue for the foreseeable future.

Ahead of the fund launch, Foresight carried out research with financial advisers which revealed that three quarters (75 per cent) are confident about the investment outlook for UK infrastructure assets.

The majority (59 per cent) expect to see increasing demand amongst clients for exposure to the sector through SIPPs and ISAs over the next five years.

Jamie Richards, partner at Foresight, added: “The new Fund enables investors to capitalise on a thriving energy sector, which offers numerous investment opportunities across generation, transmission and distribution technologies.

“At Foresight, we have a specialist focus on energy infrastructure combined with a tradition of innovation in creating investment solutions that respond to investors’ needs. We manage funds for more than 22,000 private investors and for some financial institutions. We’re excited to be launching this infrastructure income fund.”

The Fund will be actively managed and distributed by Foresight Group LLP, an independent infrastructure and private equity asset manager.