Infrastructure and private equity investment manager Foresight Group has announced the launch of Tranche A of its Foresight Smart Bonds Fund, a simple funding solution for UK roll out of smart meters.
The new fund offers investors the choice to invest over 1, 2 or 3 year fixed terms for between 4.07 percent and 4.83 percent rates of interest per annum and is the first of its kind offering an innovative and simple funding solution for the UK roll out of smart meters. The funds raised will generate returns by lending to companies that own, operate and rent installed Smart Meters to UK energy suppliers.
Foresight Smart Bonds Fund Tranche A, the first tranche to be deployed, will remain open to investors until 15th September and is targeting a maximum fundraise of £10 million, delivering the choice of simple interest between 4.07 percent and 4.83 percent depending on the term chosen (one, two or three years) and interest payment preference (annual or at maturity). The group is planning to issue further Tranches in due course, and details will be published on Foresight’s website as they become available.
The Fund is an innovative funding solution for owners and operators of Smart Meters, the new generation of gas and electricity meters being installed by energy suppliers in every home and business in the UK. Smart meters come with an in-home display screen that show consumers exactly how much energy they are using in pounds and pence, in near real time, and include a communications hub which enables the equipment to send usage data back to the energy supplier at regular and predetermined intervals. It is estimated that the efficiencies to be gained from universal adoption of smart meters runs to more than £13.5 billion.
Foresight has a five year track record of funding smart meter installation in the UK, having to date invested £74 million of debt and equity into more than 160,000 smart meters across the UK, and having launched Foresight Metering, a second generation Meter Asset Provider (MAP) in early 2016.
The Fund has a minimum investment of £10,000 and no maximum, with investors allocated on a first come, first served basis. As such, advisers who have clients who might be interested are encouraged to apply early so as not to be disappointed. Interest payments are paid annually or on maturity depending on the choices of the investor. Foresight can facilitate adviser charges from the investment if so required by the investor but the manager levies no initial, annual management or exit charges against the investment.
“Foresight has a specialist focus on energy infrastructure and energy efficiency combined with a proud tradition of innovation in creating investment solutions that respond to investors’ needs” said Bernard Fairman, Chairman of Foresight. “We manage funds for more than 22,000 private investors and for some of the world’s leading financial institutions, and our innovative Foresight Smart Bonds Fund is a good example of providing investors with market leading risk adjusted returns whilst improving the energy infrastructure across the UK. We call it investing for a smarter future.”