John Laing Infrastructure : JLIF – new investment policy

JLIF has made a few minor changes to its investment policy.

The fund will in future be able to invest up to 30% in projects under construction (up from 15%). QD comment: investing in assets under construction increases the risk profile of the fund but could increase the return.

Invest up to 10% of the portfolio in projects that are not government backed PPP projects but have, broadly, the same risk profile as those projects.

Also, JLIF has an agreement with John Laing’s construction arm, the “First Offer Agreement” which gives it the chance to buy infrastructure assets. The proposal is that from now on Waste projects are excluded from this deal (as John Laing is considering setting up a new fund dedicated to this area with its own management team). In exchange, JLIF’s new First Offer Agreement will now include John Laing’s Rail projects.

The Board say that, with the new policy in place, they have identified a £400m pipeline of assets JLIF could acquire from John Laing over the next six years.

Shareholders will have to approve the proposed changes.


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