# Financial advisers back UK infrastructure to counter market headwinds Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-10-12 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Foresight Launching UK Infrastructure Income Fund in 2017 Meta Description: Find out why 75% of advisers are positive about UK infrastructure assets. Discover Foresight's new income fund targeting UK infrastructure. URL: https://financedigest.com/financial-advisers-back-uk-infrastructure-to-counter-market-headwindshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd121017-9-1736843380683-compressed.jpg) - 75% of advisers are positive about the investment outlook for UK infrastructure assets - 32% are looking to increase client allocation to infrastructure - Foresight targeting launch of a UK infrastructure income fund later this year Three quarters (75%) of financial advisers are bullish about the investment outlook for UK infrastructure assets and the majority (59%) expect to see increasing demand amongst clients for exposure to the sector through SIPPs and ISAs over the [next five years](https://www.financedigest.com/musk-says-tesla-will-launch-prototype-of-humanoid-robot-next-year.html "Musk says Tesla will launch prototype of humanoid robot next year"), according to a new study.1 The research, conducted by Foresight Group LLP (“Foresight”), a [leading independent infrastructure and private equity](https://www.financedigest.com/private-equity-resilience-leads-to-opportunity.html "Private Equity – Resilience Leads to Opportunity") manager, among 206 financial advisers, shows that infrastructure is poised to become an increasingly popular asset class for investors as it mitigates four of the biggest headwinds facing client portfolios. These were identified as **volatility** by more than half (56%) of advisers, a **market correction** (49%); **inflation** (42%) and **interest** [rate rises](https://www.financedigest.com/bank-of-england-set-for-second-hefty-rate-rise-in-a-row.html "Bank of England set for second hefty rate rise in a row") (28%). Three in ten (32%) advisers are looking to increase their clients’ allocation to the asset class over the [next three years](https://www.financedigest.com/uber-rival-bolt-seeks-to-turn-profitable-next-year-ipo-in-2025.html "Uber rival Bolt seeks to turn profitable next year, IPO in 2025"). Foresight’s [analysis reveals that UK Listed Infrastructure investment companies significantly outperformed UK equity markets](https://www.financedigest.com/outside-door-handle-market-analysis-trends-top-manufacturers-share-growth-statistics-opportunities-and-forecast-to-2027.html "Outside Door Handle Market Analysis, Trends, Top Manufacturers, Share, Growth, Statistics, Opportunities and Forecast to 2027") over five years to August 2017. The [FTSE All Share grew 61% compared to 70% for UK Listed Infrastructure investment companies2 while also experiencing significantly lower](https://www.financedigest.com/banks-miners-lead-ftse-100-lower.html "Banks, miners lead FTSE 100 lower") volatility (4.9% against 13.1%) over the same period. In response to [growing demand](https://www.financedigest.com/wi-fi-semiconductor-chipset-market-gain-impetus-due-to-the-growing-demand-over-2015-2025.html "Wi-Fi Semiconductor Chipset Market Gain Impetus due to the Growing Demand over 2015-2025") from advisers and investors, Foresight is applying its experience in the energy and infrastructure sectors to launch an income fund targeting UK infrastructure later in 2017.  The [fund will invest in UK listed renewable energy and infrastructure investment company equities](https://www.financedigest.com/global-equity-funds-attract-inflows-for-second-week-in-a-row.html "Global equity funds attract inflows for second week in a row") and bonds. **_[Growth of renewable energy](https://www.financedigest.com/renewable-energy-monitoring-and-control-system-market-to-witness-an-outstanding-growth-by-2030.html "Renewable Energy Monitoring and Control System Market to Witness an Outstanding Growth by 2030") as an investible asset class_** The UK has seen unprecedented growth in renewable energy and infrastructure [investment over the last five years](https://www.financedigest.com/halfway-through-2021-what-can-you-do-now-to-finish-the-2021-investment-year-strong.html "Halfway through 2021, what can you do now to finish the 2021 investment year strong?"). In the [next eight years](https://www.financedigest.com/e-prescribing-market-sales-revenue-to-substantially-surge-in-the-next-ten-years.html "E-Prescribing Market Sales Revenue to Substantially Surge in the Next Ten Years"), the UK is predicted to experience a 27% annual increase in cumulative renewable energy generation3.Much of this investment has and is expected to come from UK listed renewable [energy and infrastructure investment companies](https://www.financedigest.com/australian-state-balks-at-energy-companys-request-for-help-with-lng-import-terminal.html "Australian state balks at energy company’s request for help with LNG import terminal"), of which there are over 20, with a combined market capitalisation of £17bn4. **Jamie Richards, Partner at Foresight,** commented: “The global and UK [energy market](https://www.financedigest.com/analysis-energy-market-turmoil-shakes-europes-green-power-plan.html "Analysis: Energy market turmoil shakes Europe’s green power plan") is undergoing a generational change, opening investment opportunities across generation, transmission and distribution technologies. The [global decarbonisation agenda will lead to a growing](https://www.financedigest.com/fish-based-pet-food-market-to-surpass-us-16213-2-mn-as-demand-for-pet-food-with-high-nutritional-value-grows-globally.html "Fish Based Pet Food Market to Surpass US$ 16,213.2 Mn as Demand for Pet Food with High Nutritional Value Grows Globally") reliance on renewable energy, which is becoming cheaper to produce and easier to store. Meanwhile, the retirement of existing [fossil fuel](https://www.financedigest.com/stellantis-wont-race-to-split-electric-vehicles-from-fossil-fuel-cars.html "Stellantis won’t race to split electric vehicles from fossil fuel cars") plants will drive increased demand.” “At Foresight, we have a specialist focus on [energy infrastructure](https://www.financedigest.com/russian-missiles-hit-30-of-ukraines-energy-infrastructure-in-two-days-minister.html "Russian missiles hit 30% of Ukraine’s energy infrastructure in two days – minister") combined with a tradition of innovation in creating investment solutions that respond to investors’ needs. We manage funds for more than 22,000 private investors and for some of the [world’s leading](https://www.financedigest.com/arora-project-have-experienced-out-of-this-world-returns-with-their-lead-generation.html "Arora Project have experienced out-of-this-world returns with their lead generation") financial institutions. We’re excited to be launching an infrastructure income [fund](https://www.financedigest.com/hedge-funds-set-to-end-2021-with-inflows-for-first-time-in-three-years.html "Hedge funds set to end 2021 with inflows for first time in three years") later in the year.” **Simon Bullock,** **Chartered** **Financial Planner and** **Partner** **at Mulberry Bow,** added **:**“Infrastructure assets have performed tremendously [well over the last few years](https://www.financedigest.com/why-well-look-back-on-2022-as-a-defining-year-for-fintech.html "Why we’ll look back on 2022 as a defining year for fintech") and many of my clients expect that trend to continue. Foresight’s research has shown that infrastructure has become an increasingly popular asset class for investors as it helps mitigate against [investment portfolio](https://www.financedigest.com/investment-portfolio-diversification-why-its-important-and-how-to-do-it.html "Investment Portfolio Diversification: Why It’s Important and How to Do It") threats such as volatility, inflation, rising interest rates and wider macroeconomic underperformance. We believe infrastructure is an exciting sector for our clients and would welcome more [investment products](https://www.financedigest.com/what-are-the-top-luxury-products-to-invest-in-for-2021.html "What are the top luxury products to invest in for 2021?") in this space.” Renewable [energy and infrastructure are attractive asset](https://www.financedigest.com/exclusive-repsol-agrees-to-sell-alberta-oil-assets-to-cppib-backed-teine-energy-sources.html "Exclusive-Repsol agrees to sell Alberta oil assets to CPPIB backed-Teine Energy -sources") classes as they are characterised by stable and predictable demand, high barriers to entry and long-term contracted revenue streams. UK listed renewable energy and infrastructure investment companies frequently benefit from [protection from inflation as a high proportion of underlying asset](https://www.financedigest.com/how-to-best-protect-assets-following-major-global-shifts.html "How to Best Protect Assets Following Major Global Shifts") revenues are directly linked to inflation. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---