3i Infrastructure struggles in India
While 3i Infrastructure's European portfolio performed well in the year to March 31st, the infrastructure investment firm did highlight a more challenging environment in India.
While 3i Infrastructure's European portfolio performed well in the year to March 31st, the infrastructure investment firm did highlight a more challenging environment in India.
Portfolio income amounted to £73.1m during the 12-month period which fully covers the group's dividend distribution objective of 5% of opening net asset value (NAV). The firm invested a total of £202.9m during the year, while generated realisation proceeds of £132.6m.
The European portfolio is said to have performed well and continues to deliver a good yield, with Eversholt Rail Group performing particularly strongly.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, the group's India Infrastructure Fund has been hit by a depreciating Indian rupee and a 21% fall in the share price of Adani Power Limited since the end of September.
"As usual, an important element of the determination of the results for the year to 31 March 2012 will be the valuation exercise carried out on the investment portfolio as at that date," the group said.
As at March 29th, the firm had cash balances of £171.8m, compared with £136m on January 24th, reflecting investment activity, the conversion of 19.4m warrants and income receipts from the portfolio.
"3i Infrastructure's European portfolio continues to perform well. Market conditions in India, however, have been more challenging. Overall, the portfolio has continued to generate strong income," said Chairman Peter Sedgwick.
BC
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
8 of the best houses for sale with libraries
This week: the best houses for sale with libraries – from a five-storey Georgian townhouse in Bloomsbury, London, to a 15th-century property with a library in a medieval tower in Lozère, France
By Natasha Langan Published
-
Investors pull money from UK equities as government warns of “painful” Budget
The government’s post-election honeymoon period has been short-lived, and investors are shying away from UK equities as a result
By Katie Williams Published