JLIF returns 13% since inception

The John Laing Infrastructure Fund has posted solid results for the first six months of the year, growing its portfolio value by 4.5%. Other highlights of the half year include raising £31m of new equity and six new investments.

John Laing Infrastructure Fund (JLIF), a UK-listed infrastructure vehicle, has reported its results for the first half of the year, revealing it has returned 13 percent to investors since its initial public offer in November 2010.

The first six months of the year have seen JLIF busy on the fundraising trail, tapping existing investors for an extra £31 million (€39 million; $49 million) in April, and closing six deals – five new acquisitions and one incremental stake purchase – worth £53.5 million.

“At a time when global financial markets continue to experience turbulence and volatility, JLIF continues to offer a stable and steady yielding environment. The first half of the year saw JLIF once again deliver a robust performance, raising £31 million from existing shareholders in April, executing six new acquisitions, delivering cost efficiencies across the portfolio and paying a dividend in line with expectations,” JLIF chairman Paul Lester highlighted in a statement.

JLIF paid an interim dividend of 3 pence per share, which it calls “in line with stated target dividend yield”.

The listed vehicle currently manages a portfolio of 35 infrastructure assets across street lighting, schools, defence, health, justice, regeneration and social housing in the UK, Canada and Finland. Most of the assets are operational and backed by government availability payments as opposed to demand risk.

One of the assets in JLIF’s portfolio is a 27.5 percent stake in Greenwich’s Queen Elizabeth Hospital, owned by the South London NHS Trust, which has hit the headlines recently for having trouble servicing its PFI bills. But JLIF noted that the project is backed by a letter from the Secretary of State for Health pledging intervention in the event of non-payment from the relevant NHS Trust. As such, JLIF indicated “there is no material risk at this time”.

In its statement, JLIF stressed its first offer agreement with developer parent John Laing, which provides it with visibility on a pipeline of more than £350 million of assets over the next three years.