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Infrastructure fund expects market slowdown after Brexit vote

William Turvill
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EU Referendum - Signage And Symbols
The UK voted to leave the European Union on 23 June (Source: Getty)

UK-based John Laing Infrastructure Fund (JLIF) expects a slowdown in market activity in the aftermath of the EU referendum.

The figures

In its interim results for the first six months of the year, the infrastructure fund reported a pre-tax profit of £72.3m, up from £14.5m in the same period last year.

The company’s net assets, meanwhile, totalled just over £1bn on 30 June, up from £883m.

Read more: Investing in infrastructure: Are pipes and roads the new bricks and mortar?

Net asset value (NAV) per share came in at 113.8p, up from 108.4p.

JLIF’s share price was down one per cent to 132p at the time of writing.

12 September 2016 @ 3:15pmJohn Laing Infrastructure Fund Ltd (JLIF)

Why it’s interesting

JLIF said it expects a slowdown in activity after the UK voted for Brexit at the end of June, while “investors take stock of the political and economic situation”.

But the firm said it does not “expect this to last long”.

“We also expect to see dual pressure on asset pricing with non-sterling denominated investors seeking to take advantage of a weakened sterling, offset by the ‘wait and see’ attitude likely to be adopted by some investors in the short term.”

Read more: Britain needs a state-backed infrastructure blitz to restore confidence

What the company said

Chairman Paul Lester:

I am pleased to report another period of good financial performance, supported by further international expansion and the divestment of two projects at a significant premium to holding value. We remain positive about the outlook for the company.

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