Infrastructure trust - INPP - International Public Partnerships

[richfool]

I don't think I've seen reference to this investment trust on the LF boards. International Public Partnerships - INPP. It is in the infrastructure sector and would seem to offer some useful diversification. Guernsey based, so no stamp duty on share purchases.

The investment policy is to invest directly or indirectly in public or social infrastructure assets (usually via entities which have been granted a concession to operate and manage those assets) and related businesses located in the UK, Australia, Europe, North America and ...The company will seek to enhance the capital value and the income derived from its investments.

It currently yields 4.47% and is at a premium of 6.33%.

I hold this trust and have been pondering topping up.

https://www.hl.co.uk/shares/shares-sear ... ps-ltd-ord

https://www.hl.co.uk/shares/shares-sear ... ps-ltd-ord

Comparison with peers:
https://citywire.co.uk/funds_insider/in ... ePeriod=12

Noted that EGL which holds utilities and infrastructure, offers a similar yield: 4.08% but is at a discount of 6.88%, presumably because the utilities content and the possibility of government interference represent a concern to investors. Though EGL has performed very well (and better than INPP) over recent years. That could in part be due to EGL recovering from a lower point/greater falls resulting from Corbin & McD's threats of nationalisation.

[thebarns]

It was also one I am considering investing in for the first time.

I like VT RM Alternative income fund and many of its constituents and hold a good number of them directly.

I note from their most recent monthly factsheet, September 2019, that INPP has rocketed to their top holding in the fund, I think as a consequence of a very recent share placing/offer, in which the fund must have taken the opportunity to increase its holding by an appreciable amount - so very recent evidence of this fund approving of INPP.

[richfool]

Citywire - views on infrastructure in view of the general election. INPP is a "hold".

Stifel analyst Iain Scouller has reviewed his social infrastructure fund recommendations in response to the growing likelihood of a general election. The political risk facing investors in 3i Infrastructure, BBGI, GCP Infrastructure, HICL Infrastructure and International Public Partnerships (INPP) was a socialist Labour government under Jeremy Corbyn (pictured) or a left-leaning coalition nationalising private finance initiatives (PFI) in the NHS, bringing utilities under state control and rises in corporation tax.

HICL was the most exposed to PFI risk with around 40% of its assets in health and education projects, which is why its shares fell when Labour first threatened to take action two years ago and had been weak recently. The other funds were far less exposed with INPP at 8%, 3i Infrastructure at 7% and BBGI with UK schools and healthcare projects under 15% of its portfolio although its only exposure to a UK acute hospital was less than 1% while NHS LIFT improvement projects represented 8% of net assets.

https://citywire.co.uk/investment-trust ... t/a1267645

The article also follows onto look at Social Housing, Pacific Horizon trust, Global Financials and BioPharma.

[richfool]

Perhaps I'm flogging a dead horse in trying to stimulate some interest on this topic, though understood infrastructure is probably somewhat out of favour, or particularly risk sensitive, in the run up to the general election, in view of Corbin and McD 's stated policies.

Anyway, after perusing the subject, and taking on board the points in the article below about SEQI (Sequoia Economic Infrastructure), - SEQI instead of investing in the equity or shares of infrastructure projects, lends to the projects, which places it ahead of equity investors in the line of creditors. So rather than topping up my holding of INPP, I have instead taken a holding in SEQI. Dividend yield: 5.22%, though at a prem of: 15.24%.

Instead of investing in the equity - or shares - of infrastructure projects and earning dividends on their stakes, GCP Infrastructure Investments (GCP) and Sequoia Economic Infrastructure Income Fund (SEQI) lend to infrastructure projects. They both earn interest on their loans and bonds which they pass on to their shareholders in quarterly dividends. At their current share prices these support highly attractive yields of around 6%, which is about the same level as the social infrastructure funds.

Not only do both have far smaller exposure to UK PFI contracts (in SEQI’s case just 2%) - a feature that has shielded them somewhat from the recent fall-out in the sector - but the way they operate arguably makes them safer investments. As lenders of loans secured on infrastructure assets, both GCP and Sequoia stand at the front of the line of creditors, ahead of equity investors, should anything go wrong.

(April 2018): https://citywire.co.uk/investment-trust ... a/a1108527

https://www.hl.co.uk/shares/shares-sear ... income-npv

Jan 2019: https://citywire.co.uk/investment-trust ... e/a1196091

May 2019: https://citywire.co.uk/investment-trust ... s/a1230080