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Good news from the GRIF portfolio translates to positive returns for investors

We have seen a tremendous performance from the FP Foresight Global Real Infrastructure Fund (GRIF) recently and this week announced that the Fund has reached £100 million NAV since its June launch, returning over 14% growth in that time. In this post, Fund Manager Nick Scullion sheds light on some of the key performance drivers.

GRIF invests into the publicly traded shares of companies that own or operate real infrastructure and renewable energy assets globally. One such company, Canadian listed renewables company, Inergex, was upgraded by BMO to ‘outperform’ from ‘market perform’. In comments made this week, BMO remarked that the company has “one of the highest-quality renewable assets” under the bank’s research coverage. As a result, its share price rose by 5%.

There was also positive news from other companies in GRIF’s portfolio; Encavis, a German listed onshore wind energy company, rose 4.8% to its highest value in more than 19 years after Bankhaus Lampe raised its price target for the stock to EU11.20 from EU10.50. The raise came as new financial targets for 2025 were presented last week. A Bankhaus Lampe research analyst noted that Encavis’ targets exceeded the bank’s expectations and provide greater visibility until 2025.

And finally, New Zealand listed renewables and infrastructure asset owner, Infratil, continues to see strong share price performance following a material upward revaluation of their Canberra Data Centre assets in Australia.

With an eye on the future, the outlook for Sterling is considerably less buoyant than a month ago as a January rate cut looks likely following comments from Bank of England Governor Mark Carney and other policy makers. A rate cut typically causes currencies to weaken as they become less attractive to investors on a relative basis.

GRIF's performance since inception stands at 17.39% and 1-month performance at an impressive 5.28%. The Fund continues to benefit from exposure across multiple developed markets, asset types and counterparties which, in effect, reduce volatility and facilitate successful active management.

Performance stats as at 14th January 2020. Company data sourced from Bloomberg. Capital at risk. Seek financial advice.

Disclaimer

The value of an investment can fall as well as rise. Investments in smaller unquoted companies are higher risk than investments in larger quoted companies. Investors may not get back the full amount they invest.

Past performance is not a reliable indicator of future results.

We recommend investors seek professional advice before deciding to invest. Foresight is not able to offer investment advice.