Foresight Capital Management has launched a sustainable real estate fund which will invest in European, North American and Asian REITs, while embedding the UN Global Compact 10 Principles and four of the UN Sustainable Development Goals into its investment process.
FP Foresight Sustainable Real Estate Securities, which will be managed by Mark Brennan, aims to achieve a 4% yield and capital growth over a rolling five-year period.
It will invest in portfolios with an average of £6bn of assets under management in order to maximise liquidity, while focusing on "resilient sectors" such as logistics, medical properties and data centres.
It will also only invest in companies the team believes deliver a net social or environmental benefit.
Manager Brennan said Foresight's new sustainable real estate fund "enables investors to capitalise on the income profile associated with real estate investing alongside the liquidity provided by the public markets", at a time when "many traditional sources of income are under sustained pressure".
"The fund provides global access to sectors of the property market that are well positioned to benefit from modern tailwinds, such as the growth of e-commerce and acceleration of digitisation, which can play a vital role in income-focused portfolios, while directly contributing towards a sustainable future," he added.
Brennan joined Foresight in 2017 and currently runs the FP Foresight UK Infrastructure Income and Global Real Infrastructure funds. Prior to this, he worked as an investment analyst at SL Capital Partners and has held roles at UK Green Investment Bank and Accenture.
Foresight Capital Management is a subsidiary of infrastructure and private equity specialist Foresight Group, which currently has £6.5bn of assets under management across EISs, VCTs, inheritance tax solutions and open-ended funds.
FP Foresight Sustainable Real Estate Securities will become its third OEIC, bringing its assets across open-ended mandates to £500m.