Audio Note | International Public Partnerships: Securing the future through reinvestment

INPP was born in response to a policy-driven investment opportunity, but rather than tailing off as its initial public-private partnership (PPP) projects approached maturity, it has grown into a diversified and increasingly future-proofed portfolio of government-backed, regulated and operating assets offering sustainable, growing and inflation-linked income for the next 25 years even if no new investments are made, alongside some capital growth potential. The structuring of its deals and the choice of assets (for example, transmission lines for offshore wind farms, rather than the wind farms themselves, and rolling stock leasing companies rather than nationalisation-bound train operating companies) mitigates risk and protects returns, while shareholders can also enjoy the knowledge that their investment is enabling the development of the essential services necessary to a modern society. A near 19-year record of unbroken and fully covered dividend growth have fed into NAV and share price total returns of c 250% since launch, averaging 6.3% a year on a share price basis.