A number of the infrastructure investment companies have been broadening their remit overseas, with some of them even diversifying into social infrastructure projects suchas social housing.
However, the government still needs to find around £600bn to fund future infrastructure projects, and approximately £300bn of that will need to come from the private sector. So we can anticipate a trilogy in the Public Private Partnership Initiative, although it might need a rebrand – PP3 has a slightly unfortunate ring given the political background.
Whatever the rebrand, we remain happy holders of a number of companies in the infrastructure investment company sector.
The combination of political risk and Carillion risk at the beginning of the year gave Seven Investment Management an opportunity to add and the subsequent performance of the sector has vindicated this move.
Matthew Yeates is investment manager at Seven Investment Management
