Foresight Renewable Energy Infrastructure Fund (FREIF) is a unique opportunity for Australian wholesale investors to access infrastructure via a debt fund managed with the expertise of a leading global infrastructure investor.
As market volatility and low interest rates persist, traditional income sources such as property and bonds have demonstrated their susceptibility to downturn risk and have delivered unsatisfying returns. To secure long-term returns, investors are having to adapt and strengthen the defensive component of their portfolios.
So where is the ‘smart money’ going? In recent years, a number of leading institutions have turned to renewable energy infrastructure to future-proof their portfolios.
In fact, over the coming two decades, the world is predicted to invest a total $10.2 trillion into power generation technology - and nearly three quarters of this sum will go to renewable energy sources.
While the sector’s potential is clear, investors need to be aware that not all renewable energy investment offerings are built the same way.
Until now, most Australian investors seeking exposure to the infrastructure sector could find it solely through equity products, while only larger institutional investors benefited from access to infrastructure debt.
Infrastructure debt can be less susceptible to market volatility, tends to offer superior risk adjusted returns, and can provide a reliable income stream over time. By holding senior security over the assets, infrastructure debt aligns with strong capital preservation strategies.
Key characteristics of infrastructure debt products: