Foresight Group has launched a new fund to invest in UK-listed renewable energy and infrastructure equities and bonds.
The FP Foresight UK Infrastructure Income Fund will target an annual income of 5% per year, with dividends paid quarterly, the London-based infrastructure and private equity investment manager said.
Ahead of the fund launch, Foresight conducted research with financial advisers which revealed that three quarters, or 75%, were bullish about the investment outlook for UK infrastructure assets.
The majority numbering almost 60% expected to see increasing demand among clients for exposure to the sector over the next five years.
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, Foresight Group informed.
Jamie Richards, Partner at Foresight, said: “The new FP Foresight UK Infrastructure Income Fund enables investors to capitalize on a thriving energy sector, which offers numerous investment opportunities across generation, transmission and distribution technologies. The global decarbonization agenda will lead to a growing reliance on renewable energy, which is becoming cheaper to produce and easier to store.”
Foresight said it believed renewable energy and infrastructure to be attractive asset classes as they are characterized by stable and predictable demand, high barriers to entry and long term contracted revenue streams.
The UK has seen unprecedented growth in renewable energy and infrastructure investment over the last five years that is expected to continue for the foreseeable future, according to Foresight, which cited the forecast for the next eight years that shows a 27% increase in cumulative UK renewable energy generation.