The Premier Global Utilities Fund, run by James Smith and Claire Long, had built a portfolio of utilities stocks since its launch in 2012 with a focus on the energy and water sectors as well as waste-water treatment, renewable energy and conventional power generation.
The £43.4m fund will see its remit expanded enabling the team to invest in a wider range of infrastructure assets.
New assets could include airports, toll roads, telecommunications and hospitals and prisons and the fund will be renamed the Premier Global Infrastructure Income Fund.
Mike O’Shea, chief executive at Premier, said the new expanded fund will offer greater diversification and provide more potential for growth and income.
“The strong demand for income should continue to lead to a strong demand for alternative sources of income generation for client portfolios, including from infrastructure assets.
“Premier has a proven investment team capability for managing the different infrastructure sectors covered by the existing fund, and they have the investment experience and skills to cover the broader range of infrastructure sectors included in the proposed new fund.”
Under the leadership of Smith, the utilities fund has delivered a yield of 5.3% a year.
He said: “We have delivered excellent returns to our investors over recent years, but we believe we can further enhance both capital and income returns by expanding our investment universe into other infrastructure sectors.
“By widening our investment pool, but retaining our focus on income generating asset backed companies, we will seek to exploit the many exciting investment opportunities available in the global infrastructure sector.”
The fund will remain heavily invested in utility assets for the forseeable future and the infrastrucuture exposure introduced gradually.
