JLIF to make aggressive changes in investment policy
John Laing Infrastructure Fund (JLIF) is seeking shareholder approval to amend the company's investment policy to provide greater optionality and flexibility in investment decisions. JLIF also announced changes to its agreement with John Laing, which will allow it to source a larger pool of assets in order to continue to meet the company's investment objective.JLIF's board proposes to:
- amend the company's investment policy to increase the limit on investment capital in projects under construction from 15% to 30% of the fund's total assets;
- amend the investment policy to allow the company to acquire infrastructure assets, comprising up to 10% of total assets, that are not government-backed PPP assets but have substantially the same risk profile and characteristics as PPP projects;
- enter into a new first offer agreement with John Laing plc to include the rail assets, such as the landmark InterCity Express Project in the UK, and to amend the existing agrement to exclude waste assets, resulting in a net increase in the pipeline from John Laing of approximately £115 million over the next six years;
- amend the investment policy to reflect certain consequential changes which are required as result of the new agreement and the amended existing agreement being adopted;
"Our announcement this morning marks another exciting step for JLIF. While we remain confident of asset flow in the near future, the proposed changes to our pipeline and investment policy will ensure JLIF is best positioned to continue to capture carefully selected opportunities, and will provide greater optionality and flexibility in investment decisions. This will help JLIF to capitalise on evolving changes taking place in the infrastructure market worldwide, giving the fund access to opportunities that would otherwise have been missed, and help JLIF to continue to drive value for shareholders."