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Foresight Open-Ended Investment Company FAQs

Use the tips and tools below to find answers to questions commonly asked about open-ended investment companies (OEIC) and our two OEIC vehicles: FP Foresight UK Infrastructure Income Fund (FIIF) and the FP Foresight Global Real Infrastructure Fund (GRIF).

What is an open-ended investment company?

An open-ended investment company (OEIC) is a type of company specifically established to make investments. Investors are able to subscribe to shares in an OEIC and gain exposure its underlying investment performance. OEICs have a variable number of shares which means that when an individual wants to invest, new shares are created; they do not have to be bought from an existing shareholder. The price at which shares can be bought or sold is set once every day, and there is no bid/ask spread.

What is an infrastructure asset?

Infrastructure assets provide essential services that allow the global economy to function. Broadly they are split into six sub-sectors of which in the UK, renewable energy is the largest. The global and UK energy market is undergoing a once-in-a-lifetime upheaval, opening up opportunities across energy generation and flexible grid infrastructure such as energy storage, transmission and distribution.

Why is the infrastructure asset class attractive?

The underlying infrastructure assets (roads, schools, hospitals, solar farms, wind parks) to which the fund will be exposed are attractive for a several key reasons:

  • Long term contracted revenues
  • Material inflation linkage
  • Low correlation to equities
  • Public-sector counterparties
  • Low volatility

With the prevailing low interest rates and yields from sovereign and corporate bonds at historical lows, investors have unsurprisingly found the predictable cash flows, uncorrelated and inflation-protected yields from infrastructure assets increasingly attractive. The UK has seen rapid recent growth in the number of infrastructure investment companies with more than 20 now available to investors, amounting to a combined market capitalisation of more than £17 billion.

What are the risks?

The main risks of this investment are investment, market, liquidity and operational risk. Foresight will be actively monitoring and mitigating these risks through a focus on investment selection, appropriate cash management, best execution and rigorous compliance and oversight in line with market practice.

FP Foresight UK Infrastructure Income Fund (FIIF)

What will FIIF be investing in?

FIIF will be investing in LSE-listed investment companies that focus on the infrastructure and renewables sectors. These listed companies have exposure to high quality, long-term cash flows that often carry meaningful levels of inflation linkage. The dividends paid are attractive and form the basis of the income that the fund intends to provide to its investors.

What return can I expect from an investment in FIIF?

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Who manages FIIF?

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How do I invest in FIIF?

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Learn more about FIIF: Click here.

FP Foresight Global Real Infrastructure Fund (GRIF)

What will GRIF be investing in?

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What return can I expect from an investment in GRIF?

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Who manages GRIF?

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How do I invest in GRIF?

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Learn more about GRIF: Click here.

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Important Information: Foresight Group LLP is authorised and regulated by the Financial Conduct Authority (FRN: 198020). As with all investing, capital is at risk.