Foresight Capital Management

News

3 minutes

2022-08-11

Foresight Global Real Infrastructure Fund shows continued outperformance at 3-year anniversary

  • FP Foresight Global Real Infrastructure Fund reaches 3-year anniversary with a total return of 42.2%
  • Performance driven by exposure to global renewable energy and ‘real’ infrastructure
  • NAV has grown to over £604m as of 9th June

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London, 11 August 2022: Foresight Capital Management (“FCM”), part of Foresight Group LLP, recently celebrated the three-year anniversary of its FP Foresight Global Real Infrastructure Fund UK (“GRIF” or “the Fund”) which has delivered outstanding performance, outperforming its benchmark of UK CPI +3% since inception in 2019.

Total return for the three years to 3 June 2022 was 42.22%, outperforming the Fund’s benchmark of CPI+3% by 29.13%, as well as industry peers, during unpredictable and volatile market conditions. Fundraising has continued to be strong, demonstrating appetite for the strategy with a NAV increase of £42m in the last 12 months, totalling £604m.

In an inflationary environment alongside the possibility of an economic downturn, real infrastructure and renewable assets offer strong protection for investors looking to avoid losses in their portfolio. The lower volatility of earnings and higher yields than traditional equity markets make infrastructure a strong defensive addition to a portfolio, as well as providing diversification benefits through a much lower correlation to other asset classes.

Nick Scullion, Partner at Foresight Group, commented: “The returns generated by infrastructure and renewable energy assets are less affected on a relative basis compared to traditional equity markets, provide an effective diversifier in portfolios. Combined with contracts which are often inflation-linked, and long-term underlying contracts, we believe the fund is well positioned to weather difficult investment conditions which are likely to continue throughout the rest of this year and beyond.”

Outperformance has been primarily driven by the Fund’s exposure to best-in-class renewable energy companies, which is the Fund’s highest sector allocation. The Fund has also been able to remain insulated from wider economic conditions by focusing on ‘real’ infrastructure, meaning those companies whose cash flows are typically long-term and generated by a tangible infrastructure asset. GRIF has outperformed the FTSE All World equity index in the last 12 months, generating 3.70% whilst the index returned 2.65%

Managed by the award-winning Foresight Capital Management team (“FCM”), GRIF was launched in June 2019 to attract investors seeking stable and predictable income alongside true diversification and attractive risk-adjusted returns from a global portfolio. The Fund is well positioned to benefit from major developments and innovations in several asset-based infrastructure subsectors. Many of the Fund’s holdings are actively ramping up expansion into assets such as 5g digital enabling infrastructure, clean energy generation, transmission and storage. The overall investable universe for the Fund is expanding at pace as new companies listed in developed markets see expansion driven by asset innovation.

Scullion continued“The FP Foresight Global Real Infrastructure Fund has continued to perform exceptionally well in its third year, with market beating returns and huge support from investors. The Foresight Capital Management team has delivered strong risk adjusted returns from conviction led active management, alongside implementing a strong program of proactive engagement on sustainability issues with portfolio companies. We continue to expand our investment horizons, including in sectors such as digital infrastructure, which will prove to be a crucial part of a modern, connected society.”

 

ENDS

For more information contact:

Will Easton: foresight@citigatedewerogerson.com / +44 (0) 7786 420 017

 

About Foresight Group LLP (“Foresight”):

Foresight Group was founded in 1984 and is a leading listed infrastructure and private equity investment manager. With a long-established focus on ESG and sustainability-led strategies, it aims to provide attractive returns to its institutional and private investors from hard-to-access private markets. Foresight manages over 300 infrastructure assets with a focus on solar and onshore wind assets, bioenergy and waste, as well as renewable energy enabling projects, energy efficiency management solutions, social and core infrastructure projects and sustainable forestry assets. Its private equity team manages ten regionally focused investment funds across the UK and an SME impact fund supporting Irish SMEs. This team reviews over 2,500 business plans each year and currently supports more than 200 investments in SMEs. Foresight Capital Management manages four strategies across six investment vehicles with an AUM of over £1.6 billion.

 

Foresight operates from 12 offices across six countries in Europe and Australia with AUM of £9 billion as at 13 June 2022*. Foresight Group Holdings Limited listed on the Main Market of the London Stock Exchange in February 2021. https://www.fsg-investors.com/

 

*Unaudited Assets Under Management, as at 13 June 2022.

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