6th Sep 2019 08:53
(Alliance News) - International Public Partnerships Ltd on Friday said net asset value per share rose in its most recent year due to positive foreign exchange movements and a drop in government bond yields.
The public infrastructure projects and businesses investor reported that its NAV per share stood at 150.3 pence on June 30 having been 148.1 on December 31, a 1.5% increase.
The company explained part of its NAV rise by saying that "government bond yields decreased in all jurisdictions" where International Public Partnerships is invested. Government bond yields decline when demand is high.
Moreover, International Public Partnerships also benefited from currency movements, as sterling fell against the US, Canadian, and Australian dollar in the period but strengthened against the euro.
The company raised its interim dividend by 2.6% to 3.59p per share from 3.50p per share the year before.
Although there are headwinds for "new nearer-term investment opportunities in the UK", International Public Partnerships remained positive about the "long-term quality and strength" of its existing UK portfolio despite the possibility of a no-deal Brexit and does not expect its portfolio to be hurt significantly by such an event.
Chair Michael Gerrard said: "As a result of the company's robust portfolio performance, I am pleased to report another period of long-term, inflation-linked returns to our shareholders. Over a third of the investment adviser's employees are dedicated to asset management and our focus in the period remained on ensuring the availability of the assets we own.
"It is this differentiated approach to portfolio development which continued to generate significant direct and indirect value for the company's shareholders, clients and end-users. The global outlook for infrastructure investment remains positive as the demand for the type of private capital we provide grows. The quality and resilience of our portfolio, combined with the future investment opportunities we are well-positioned to pursue, provides me with full confidence in the company's future."
Shares in International Public Partnerships were slightly higher at 161.25p in London on Friday morning.
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