This is a new strategy from Foresight although they originally set up a sustainable EIS strategy in 2004, and a Global Infrastructure Fund in 2017. Within the Global Infrastructure Fund there were REITS. This fund will look to hold between 30 to 35 holdings, and currently has 23 holdings. The aim is to deliver a yield of 4% plus growth. Property has suffered in the recent downturn, but they believe that sustainable factors drive performance and investing in the right parts of the market can drive growth.
The investable universe is around 806 REITS. However applying the high level ESG filters this comes down to around 40 companies, of which 23 they are currently invested in and 15 they are watching. We talked about the narrow investable band for the fund, and they explained that they are already seeing change within the sector. Companies can see the opportunities and are adjusting and changing strategies. There are also companies which are currently too small to invest in. All of these will increase the opportunity set….read more