The fund has a minimum investment of £10,000 and no maximum.

Foresight Group has launched a Smart Bonds Fund, which will offer investors the choice to invest over one-, two- or three-year fixed terms for between 4.07 per cent and 4.83 per cent rates of interest per annum.

The funds raised from the Foresight Smart Bonds Fund will generate returns by lending to companies that own, operate and rent installed smart meters to UK energy suppliers, the firm said in a statement.

The firm said: “Smart meters are 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.”

Foresight Smart Bonds Fund Tranche A will remain open to investors until 15 September and is targeting a maximum fundraise of £10 million ($12.9 million).

The fund has a minimum investment of £10,000 and no maximum, with investors allocated on a first come, first served basis. Interest payments are paid annually or on maturity depending on the choices of the investor.  Foresight will facilitate advisor 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. “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.”

Foresight is an independent infrastructure and private equity investment manager, which has been managing investment funds on behalf of institutions and retail clients for more than 30 years.