Investment heads towards renewables and infrastructure

Foresight Group has launched a new fund to invest directly into publicly listed companies that own and operate infrastructure or renewable energy assets globally.  It is targeting a total return of more than 3% per annum above the rate of UK inflation (measured by UK CPI).

The company said that traditional sources of income were facing structural issues, and renewable energy and infrastructure had become  increasingly attractive asset classes and a mainstay of investing for diversification. These assets are often characterised by stable, project-level cashflows and deliver predictable income with lower volatility, low correlated to traditional asset classes.

Ahead of the Fund’s launch, Foresight  research with 144 advisers  revealed a strong appetite for global infrastructure amidst fears of a sustained downturn, Brexit uncertainty and market instability. Some 66% of advisers expect to see clients’ allocations to global infrastructure increase over the next three years - more than double the number since 2017 when just 32% of advisers predicted it would become more popular.  The Fund will invest in companies that own and operate assets ranging from solar power and geothermal generation plants to medical office buildings and storage facilities.

 

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