John Laing and Brevan Howard each announced a high-profile investment trust listing last week, continuing a wave of specialist closed-end fund launches.
John Laing group plans a £270m London listing for an infrastructure fund that would be the second-largest in the past 12 months after Anthony Bolton’s Fidelity China Special Situations fund, dwarfing that of another specialist Asian vehicle, Impax Asian Environmental Markets.
John Laing Infrastructure will invest in private finance initiative or public private partnership infrastructure projects with inflation-linked returns. The company would launch without debt and would operate with a leverage cap of 25% of total assets. John Laing would retain a minimum stake of 20%. (article continues below)
The investment companies research team at Numis Securities said the fund offers the most attractive combination of net asset value and yield upside potential, which will be driven by the completion of projects under construction.
Numis Securities is also upbeat on the second big launch, a closed-ended version of Brevan Howard’s flagship Credit Catalysts strategy. The managers at Brevan Howard aim for a high level of absolute return by investing in corporate and asset-backed bonds, analysing market catalysts on a fundamental basis.
They invest in mortgage-backed and corporate credit markets using a macro trading and relative value approach through which they aim to identify short-term investment catalysts.
According to Numis Securities’ statement, the fund employs Brevan Howard’s style of strict risk controls, including stop losses.