Gravis Capital Partners (GCP) has launched the first open-ended UK-focused infrastructure fund accessible to the retail market, the VT UK Infrastructure Income fund (UKIIF).

The fund is advised by GCP Advisory and will launch on 25 January with an initial offer period opening on 18 January 2016; it is expected to deliver a 5% pa dividend on its £1 per share launch price. This fund is the first of its kind, enabling investors to invest in the UK's listed infrastructure sector through an open-ended structure.

The fund will invest in the UK's listed infrastructure companies, which generate cashflows arising from such socially and economically critical areas as healthcare, education, and power generation and distribution.

UKIIF, which is an FCA authorised OEIC regulated under UCITS IV, seeks to achieve its income and long-term capital appreciation targets by:

• Only investing in LSE-listed infrastructure funds, infrastructure equities and bonds;
• Delivering a dividend of 5% per annum, to be paid quarterly;
• Shielding investors from the volatility of the wider equity market whilst providing inflation protection, a dependable income and modest capital appreciation;
• Capping the Ongoing Charges Figure (OCF) at the Annual Management Charge (AMC) ensuring all investors will face the same modest charges, irrespective of when they invest.

Commenting on UKIIF, Stephen Ellis, senior partner of GCP said: 

"The creation of this fund will enable investors who prefer to invest in OEICs an alternative way to access solid growth asset classes and we expect UKIIF to look after investors' capital, deliver consistent growth above the rate of inflation and pay a stable, dependable income from assets which are critical to the UK's society and economy."

Rob Burdett, Co-Head F&C Multi-Manager Solutions, further commented: 

"Much of the world's infrastructure is likely to be financed via the capital markets for the foreseeable future, but it is a complex area involving long-term commitments and requiring specialised detailed contractual and legal knowledge of the various forms of infrastructure asset.  This means a diversified managed approach with specialised management is required for the vast majority of investors. I can think of no better qualified an adviser than GCP for such an approach."