Infrastructure could be the answer for investors looking for a high inflation-busting income.

The Pictet High Dividend Selection Fund, which launched in Japan in 2005 and opened to UK investors in May, aims to capitalise on the huge global demand for infrastructure spending and deliver investors a stable long-term return.

The portfolio consists of a range of infrastructure services including utilities, telecoms, energy infrastructure, waste management and transportation. It has 13.8 per cent of its assets invested in the emerging markets, but this is expected to grow to 15 per cent or more in the next year, as more opportunities emerge.

The dividend target is 4 per cent, although the managers believe this level should only rise in future years. To meet this target, there are strict regulations on investing in new companies in the fund: they must have a dividend yield of 3 per cent.

Investors can choose whether to take an annual or monthly income from the fund.

The fund is jointly managed by Hans-Peter Portnet, Karen Kharmandarian, Bruno Lippens and Louis Veilleux, all of whom are based in Geneva.

Performance compared to its benchmark – MSCI World index – has been good since 2005, although it has faltered over the past 18 months.

Last year the Pictet fund returned 13.4 per cent while the index returned 28.8 per cent. This year it has so far returned 3.3 per cent with MSCI World edging ahead with 8.7 per cent.

However, the fund’s average annualised return is 5.9 per cent, higher than the index’s average of 1.7 per cent.

Manager Lippens is keen to highlight the global aspect of the fund and he says this will guarantee a steady return over a longer period of time. He also emphasises the importance of the dividend and the benefits of choosing regulated utility companies to invest in.

Lippens says the fund’s track record shows there has been a good return even in bad financial times and emphasises the reliability of investing in global infrastructure services.

The TER for the fund is 1.65 per cent.