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International Public Partnerships says pipeline remains positive

In an update covering the period from 1 January to 29 May 2020, infrastructure-sector company, International Public Partnerships (INPP), delivered a 1.7% increase in NAV. There has been no operational change to the investment portfolio in the period since year-end results were announced on 9 April.

Income-wise, the portfolio maintains a high level of inflation-linkage, such that a 1% increase in inflation leads to a 0.82% increase in return. INPP noted that a second half-year 2019 dividend of 3.59 pence per share was declared on 9 April 2020, covering the second half of the last financial year. The distribution represents a 2.6% year-on-year increase.

Portfolio breakdown

The portfolio includes 130 projects and businesses, with the following composition:

Sector breakdown

Investment Fair Value %

Energy Transmission

22%

Transport

20%

Education

18%

Gas Distribution

17%

Waste Water

9%

Health

3%

Courts

3%

Military Housing

3%

Other

5%

Outlook – pipeline remains positive

In the outlook section of today’s update, INPP made the following points:

  • “Our portfolio of investments provides essential infrastructure to over 13m people, households and businesses daily across the countries in which we invest
  • The appetite for long-term responsible investment into public and social infrastructure remains high. There continues to be a positive outlook for private sector investment into public infrastructure across the geographies that the company invests in
  • However, the company is also acutely aware of the significant impact that the covid-19 pandemic may have on the broader economy and continues to work hard to understand the likely impacts on the company’s operations
  • While we are in no way complacent about the future, which is full of uncertainties, we take comfort from the fact that the overwhelming majority of our assets benefit from payments either linked to the availability of that asset for use, or made through a legislatively backed regulated mechanism
  • In addition, the company continues to monitor developments as Brexit preparations progress and as previously expressed, we do not believe that we are unusually exposed or that there will necessarily be a significant impact on the company’s existing investments. However, this cannot be guaranteed, and we continue to monitor developments closely, as the new relationship between the UK and the EU continues to evolve
  • The pipeline for the types of assets the company invests in is positive and the company remains confident in the ability to continue to source and develop high-quality, well-performing opportunities, globally, that deliver long-term, predictable cash flows with strong inflation-linkage that meet the company’s risk-return profile”

INPP: International Public Partnerships says pipeline remains positive

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