Fidelity International has included FP Foresight UK Infrastructure Income Fund (FIIF) in its ‘Select 50’, its list of highest conviction funds.
The fund has been recognised by Fidelity’s team of investment analysts for outstanding performance, which has seen it outperform its target return and reach £339 million net asset value.
Fundeye interviewed Foresight’s lead fund manager Mark Brennan, who is responsible for FIIF, last month.
Mr Brennan places great emphasis in finding stocks with great underlying value. The fund was launched in December 2017 and has delivered a full year yield of 5.35 percent, surpassing its one-year target of 5 percent. It has 21 holdings, 17 of which are UK-based, with a portfolio consisting of renewable energy providers and sustainable infrastructure companies. FIIF has also accomplished significant capital appreciation with a total return of 22.8 percent.
Its success comes during a period of increasing focus towards environmentally responsible funds and funds with stringent ESG criteria. Foresight Group believe that it reflects the growing appetite among UK investors for infrastructure and renewables and solidifies its position as a mainstay of investing for income. It surveyed nearly 200 advisers which indicated that three-quarters (75 percent) of advisers expected to see more infrastructure funds recommended to clients.
Commenting on the selection, Mr Brennan believed that FIIF’s inclusion was reflective of the opportunities that infrastructure funds provided in a period of increasing market volatility.
He said: “We are extremely pleased to be recognised by Fidelity International in its Select 50 list, which is acknowledged industry-wide as a leading benchmark of fund quality. The performance of the fund and the increased popularity of infrastructure investment sends a clear message to investors about the sector’s potential to deliver stable returns in otherwise volatile markets and we will continue to provide retail investors with exposure to some of the strongest infrastructure projects across the UK.”
