A solid performance from the European portfolio more than offset an indifferent showing by Indian fund in the first half of 3i Infrastructure's fiscal year.
The Jersey-incorporated, closed-ended investment company saw net asset value (NAV) per share on an investment basis improve to 121.6p at the end of September from 119.4p a year earlier.
The investment basis measurement accounts for majority investments and subsidiaries formed specifically for investment purposes in the same way as minority investments and does not consolidate these entities as required by International Financial Reporting Standards (IFRS). The IFRS NAV per share figure was not a lot different, at 121.9p, up from 119.9p a year earlier.
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The NAV per share will go down once the group pays out its interim dividend, which has been held at last year's level of 2.97p.
The value of the trust's portfolio improved to £888.5m from £715.8m a year earlier on an investment basis, and to £1,172.8m from £979.8m on an IFRS basis.
The performance of the 3i India Infrastructure Fund continued to suffer from macroeconomic uncertainty in that market, reflected in the weakness of the Indian rupee against sterling; 3i Infrastructure does not hedge against the decline of the rupee.
Issues affecting power producers in India were also a pain, resulting in the decline in the mark-to-market valuation of Adani Power Limited.
Cash balances at the end of September had subsided to £169.9m (investment basis) from £310.1m a year earlier but were virtually unchanged on the end-March figure.
The group is looking for ways to invest that cash, and is currently assessing a number of investment opportunities. As part of the XLT consortium (which also includes Siemens and Innisfree), the group remains involved in negotiations with the Department for Transport to achieve financial close for the Thameslink procurement project, for which the consortium is preferred bidder.
JH
