20th May 2015 07:34
LONDON (Alliance News) - International Public Partnerships Ltd Wednesday said it expects that its net asset value has increased over the first quarter of 2015, with the decrease in government bond yields in the jurisdictions in which it invests thought to have more than offset the strengthening of the pound sterling.
The listed infrastructure investment company's net asset value amounted to 127 pence per share at the end of 2014.
"The decrease in these rates could, other things being equal, be expected to have a positive effect on the company's NAV," International Public Partnerships said, referring to government bond rates.
The company, which invests in public infrastructure projects developed under the public private partnerships, explained that the strengthening of sterling was a drag on net asset value growth.
"Over the same period, the GBP forward curve has strengthened against the three currencies to which the company has exposure, particularly the Euro. The strengthened foreign exchange position of GBP could be expected, other things being equal, to have a negative effect on the company's NAV," the company said.
International Public Partnerships said it is positive about its prospects with regards to the "performance of its existing investments and the opportunity to add high quality investments to the portfolio during 2015".
"With respect to the latter, the company is always selective to ensure an appropriate risk and return balance within the overall portfolio," the company said.
"The company's focus continues to be on investments originated directly from the public sector rather than via the secondary market, where competition remains intense. These 'self originated' assets comprise 90% of the portfolio.
International Public Partnerships said that investment adviser Amber Fund Management has identified a "significant investment pipeline" for the company.
"In addition to these potential investments the company and its investment adviser have a larger number of transactions, which are at an earlier stage of development, under review," International Public Partnerships said.
International Public Partnerships shares were up 0.1% at 138.28 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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