- The Fund has achieved a total return of 14.13% over 12 months and grown to £51.3m
- Global real estate opportunities have provided low correlated returns for investors
- Sustainability in real estate continues to be a driver of financial performance
London 28 June 2021: Foresight Group LLP (“Foresight”), a leading independent infrastructure and private equity investment manager, is pleased to announce that its Foresight Sustainable Real Estate Securities Fund (“REF” or “the Fund”) has delivered a very strong first year of performance, with a total return of 14.13% and an indicated yield of 3.8%.
The Fund has provided attractive and low correlated returns for investors through its exposure to global real estate sectors accessed through publicly traded Real Estate Investment Trusts (“REITs”). Correlation to global equity markets over the Fund’s first year was low, with a beta of just 0.37. 180-day volatility was 9.9%, which was below both domestic and international equity markets, providing investors with a source of risk reduction and diversification within portfolios.
Structural shifts around e-commerce, data consumption and housing demand have driven strong underlying performance in global real estate sectors such as logistics, data centres and timber. The Fund has combined these structural growth themes with bespoke Sustainable Investment Criteria, providing an additional layer of performance as sustainability continues to drive competitive advantages in cost of capital and property leasing activity for REITs.
The opportunities for real estate investors wishing to focus on high growth sectors combined with a clear process for identifying sustainability excellence are significant, and the Fund is very well positioned to continue to generate returns at the intersection of these core themes.
Managed by the award-winning Foresight Capital Management team, REF was launched in 2020 to provide investors with a sustainability-driven and highly liquid access point to a globally diversified portfolio of REITs.
Mark Brennan, Partner at Foresight Capital Management, commented: “REF has had a highly successful first year, delivering strong returns and attractive risk characteristics for its investors. The importance of liquidity and sector selection within property and real estate has become clear in recent years, and the Fund has combined this focus with Foresight’s proprietary sustainability process. REF’s first year has demonstrated that real estate as an allocation within portfolios can continue to provide diversification, income and deep liquidity”.
For more information contact:
Citigate Dewe Rogerson (PR to Foresight):
Will Easton: firstname.lastname@example.org / +44 (0) 7860 753146
NOTES FOR EDITORS
About Foresight Capital Management (“FCM”):
FCM was set up in 2017 as a division of Foresight Group LLP, the specialist listed infrastructure and private equity investment manager, to manage Open Ended Investment Companies (“OEICs”). FCM’s OEIC portfolio currently comprises the FP Foresight UK Infrastructure Income Fund (FIIF) launched in December 2017, the FP Foresight Global Real Infrastructure Fund (GRIF), launched in June 2019 and the FP Foresight Sustainable Real Estate Securities Fund (REF), launched in June 2020, with funds under management currently exceeding £1.2 billion.
FCM was named ‘Fund Manager of the Year’ at the PLC Awards 2018 in respect of the outstanding debut performance of FIIF.
About Foresight Group LLP (“Foresight”):
Foresight is an award-winning listed infrastructure asset and private equity investment manager that specialises in providing investment opportunities in difficult-to-access private markets to both institutional and retail investors using ESG-oriented strategies. It has been managing investment funds on behalf of institutions and retail clients for more than 36 years.
Recently listed on the main market of the London Stock Exchange under ticker FSG, Foresight has £7.2 billion of Assets Under Management (as at March 2021, unaudited). Foresight’s Infrastructure team comprising 107 investment, portfolio and technical professionals currently manages more than 290 renewable generation assets globally, with a total generating capacity of 2.7GW.
Foresight’s Private Equity Team, comprising over 30 investment professionals, manages £700 million in a portfolio of more than 100 companies and pursues four discrete but complementary investment styles: Venture, Impact, Growth and Replacement Capital through its growing regional office network.
Foresight has offices in London, Rome, Madrid, Luxembourg, Sydney, Manchester, Nottingham, Edinburgh, Cambridge, Milton Keynes, Leicester and Guernsey.