Vontobel Asset Management has launched a global listed infrastructure fund, in co-operation with Virtus Investment Partners' affiliated manager Duff & Phelps, into the UK market.
The $130m Vontobel Fund II - Duff & Phelps Global Listed Infrastructure fund will invest in publicly traded companies that own and operate physical infrastructure assets.
Vontobel said the fund would be run with a total return approach, aiming to provide stable income, capital appreciation and long-term inflation protection.
Daniel Signer, global head of multi-asset products at Vontobel, said: "In the current low-yield environment, the quest for returns remains unbroken.
"With the launch of this fund, we are aiming to provide broad access to stable sources of returns and attractive long-term earnings growth potential at high liquidity levels."
Signer added Duff & Phelps' "active and fundamental approach to investing is a perfect match for Vontobel's investment beliefs".
Head of Vontobel's UK business Sheridan Bowers said the fund, which is available to retail and wholesale investors, would also "provide an opportunity for DB and DC pension schemes to gain access to the diversifying and higher yield benefits of infrastructure investing within a daily-priced fund vehicle".
Vontobel said the fund would seek firms providing essential services while generating stable and predictable cash-flows across entire business cycles.
It will offer access to firms benefiting from secular trends, such as the transition to renewable energy, the replacement of ageing infrastructures and the modernization of communication technology, it added.
The fund will fully integrate ESG aspects into the research process, Vontobel continued, placing an emphasis on corporate governance, capital stewardship and sustainable cash flows.