International Public Partnerships says NAV up in Q3
International Public Partnerships, the infrastructure investment company, says its net asset value grew during the third quarter of 2011.
International Public Partnerships, the infrastructure investment company, says its net asset value grew during the third quarter of 2011.
The firm, which is listed as INPP on the FTSE 250, specialises in putting money into public private partnerships ("PPPs") and private finance initiative (PFIs). Generally it does not disclose its net asset value in quarterly updates but we know that as of the end of June the NAV was £550m.
INP says currency movements since that time will have had a negative effect on asset values but so called "risk free rates" - still a widely accepted synonym for sovereign base rates - have gone down which is actually good for INPP.
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
Risk free rates are tricky to understand but because INPP gets much of its revenue from governments which are seen to be paying their debts (particularly the UK government) the value of those investments is going up. Overall this "risk free" effect is more powerful than currency movements so INPP believes its net asset value has risen during the quarter.
In addition, it has made £77m in new investments since the beginning of July, including buying 100% of the interests in the "Building Schools for the Future Investments" programme for £58.4 million. This provides INPP with minority interests in 48 projects relating to over 100 individual schools.
The company paid an interim distribution of 2.925p per share in October, slightly up on the equivalent period of 2010, with a target of 5.85p per share for the full 2012 distribution.
At 9.54am shares in INPP were flat on the open at 116.76p. Over the last 12 months the share price has risen 2%.
BS
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.
-
How to invest in nuclear power
We need nuclear power to go green, says Dominic Frisby. But there is a better option than huge power stations
By Dominic Frisby Published
-
Chase slashes its easy-access savings rate – is it time to switch?
The Chase easy-access savings account has proved popular with savers thanks to its competitive rate and bonus deals. But, as the rate has dropped, has it lost its charm?
By Katie Williams Published