Foresight Capital Management
2 minutes
12/08/2019
Chart-topping UK infrastructure income fund listed in Fidelity’s ‘Select 50’ as the asset class gains in popularity
FP Foresight UK Infrastructure Income Fund (“FIIF” or “the Fund”) has been chosen by Fidelity International to feature in its ‘Select 50’, a list of its highest conviction funds
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FP Foresight UK Infrastructure Income Fund (“FIIF” or “the Fund”) has been chosen by Fidelity International to feature in its ‘Select 50’, a list of its highest conviction funds. Selected by Fidelity’s team of investment analysts, FIIF has been recognised for outstanding performance to date that has seen the Fund outperform its target return and reach £339 million net asset value[1].
The success of the Fund reflects the growing appetite among UK investors for infrastructure and renewables and solidifies its position as a mainstay of investing for income. Recent research from Foresight Group, a leading independent infrastructure and private equity investment manager and the manager of FIIF, surveyed nearly 200 advisers and revealed that allocations to infrastructure funds were set to soar. The research indicated that three-quarters (75%) of advisers expected to see more infrastructure funds recommended to clients.[2]
FIIF was launched on 4th December 2017 and has delivered a full year yield of 5.35%, surpassing its one-year target of 5%. Since launch, the Fund has achieved significant capital appreciation, contributing to a total return of 22.8% with volatility of less than 5% (as at 9/8/2019).
As UK infrastructure continues to provide a buffer for the instability of equity markets, it is evident that more investors are recognising the benefits of the asset class, which provides access to long-term, inflation-linked and government-backed cash flows, with low correlation to traditional assets such as equities and bonds.
Mark Brennan, Lead Fund Manager of FIIF, said: “We are extremely pleased to be recognised by Fidelity International in its Select 50 list, which is acknowledged industry-wide as a leading benchmark of fund quality.
The performance of the Fund and the increased popularity of infrastructure investment sends a clear message to investors about the sector’s potential to deliver stable returns in otherwise volatile markets and we will continue to provide retail investors with exposure to some of the strongest infrastructure projects across the UK.”
