ESG drives asset growth at Foresight

Group claims it has seen a marked increase in advisers adopting defensive positions

A top investment boutique has credited ESG-focussed investing for the strong growth in its assets during the past two years.

Foresight Capital Management, set up in 2017 as part of the private equity investment management firm Foresight Group, said it has raised £500m in less than 24 months since the launch of its first open-ended investment company (OEIC).

The team cites the growing demand for ESG and sustainable investing, predictable cash yields, and lower market volatility as key drivers for its success.

Foresight’s first OEIC, the FP Foresight UK Infrastructure Income Fund (FIIF), achieved total returns of 11.65% in its first year, exceeding its target full-year yield of 5% with a total return since inception currently above 27%.

The fund focuses on renewable energy and infrastructure investment companies in the UK.

Meanwhile, its FP Foresight Global Real Infrastructure Fund (GRIF), has raised a significant £72m since launch in June – equating to around £15m a month.

The GRIF fund invests in publicly traded shares of companies that own or operate real infrastructure and renewable energy assets globally.

Due to the turbulence in equity markets over the past 18 months, Foresight said it has witnessed a marked increase in advisers adopting defensive positioning for clients’ portfolios, adding to the success of both funds.

Nick Scullion, head of Foresight Capital Management, said the funds are on track to raise a record amount in 2019.

“Both funds are well placed to cater to the strong appetite for infrastructure as an asset class in the UK and globally, which shows no signs of slowing down.

“There is an exciting future for GRIF, which has the potential to be a multi-billion pound fund due to its unique access point into global infrastructure assets,” Scullion added.