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Macquarie International NAV rises

The Macquarie International Infrastructure Fund has seen its net asset value rise for the first time since the beginning of the financial crisis, though the value of its portfolio is still down 13.5% from a year ago.

The net asset value of the Macquarie International Infrastructure Fund has posted its first quarterly rise since the start of the financial crisis.

The Singapore-listed infrastructure fund said the net asset value of its portfolio, or the fair value of all its investments divided by its outstanding shares, stood at S$0.82 per share (€0.43 ; $0.58) as of 31 December 2009. That’s about a 2.5 percent increase over the fund’s 30 September net asset value of S$0.80.

The increase marks the first time the fund’s net asset value has risen since the third quarter of 2008, according to a management presentation. The increase has helped reduce the discount between the net asset value of Macquarie’s portfolio and its listed share price to 34 percent as of 23 February. That’s down from a peak of 76 percent in March 2009, when its net asset value stood at S$0.80 and the shares traded between S$0.20 and S$0.30 per share.

However, the total net asset value of its portfolio, S$1.07 billion, is still down 13.5 percent from a year earlier. Macquarie said the decreased valuation “reflects the global economic slowdown and tight credit markets” as well as declines in the values of several of its assets, including UK broadcast transmission provider Arqiva and Taiwanese wind farm Miaoli Wind, according to a management presentation.

Looking ahead, management said they are looking to concentrate its portfolio on direct investments in Asia. The firm used to have an indirect exposure to European infrastructure through an interest in the Macquarie European Infrastructure Fund but it sold the entire interest last year for proceeds of S$174.4 million. The proceeds were used to repay debt.

The firm is also looking to divest another non-Asian asset, its 55 percent interest in Canadian Aged Care, a senior housing provider in the province of Ontario. The divestment is planned through an initial public offering, though no timeline has been disclosed for the offering.

Macquarie International Infrastructure Fund’s interest in Canadian Aged Care was valued at S$91.5 million as of 30 September 2009, according to a statement.