20th Mar 2020 09:46
(Alliance News) - GCP Infrastructure Investments Ltd said Friday its portfolio is "well placed" to handle the uncertainty caused by the Covid-19 outbreak.
Shares in the infrastructure project investment fund were 17% higher in London on Friday morning at 89.72 pence each.
GCP said its investment manager, Gravis Capital Management, said the fund, as of Friday, are continuing to perform in line with expectations.
"The directors and the company's investment adviser, Gravis, believe such investments are well placed to weather the uncertainty driven by Covid-19 over the long term," GCP said.
"Substantially all of the company's investments are availability-based infrastructure assets and therefore are not currently expected to be materially impacted by the reduced demand for goods and services that is occurring as a result of restrictions on the movement of people."
GCP noted any potential impact will likely be limited to short-term reductions in asset performance which may result from the reduced availability of personnel responsible for operating, managing or maintaining assets, or spare parts. Or, GCP said, short-term reductions in electricity prices.
"The investment adviser does not currently consider these to be material risks to the company's ability to continue to meet its key long-term objective of providing shareholders with regular, sustained, long-term dividends and the preservation of capital over the long term," GCP added.
By Paul McGowan; [email protected]
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