Inflation-Linked Income
Majority of income from assets is indexed to inflation, providing consistent, growing, real returns.
International Public Partnerships: INPP: Cashflows You Can Count On
An investment trust providing unique access to government-backed infrastructure assets across vital sectors such as energy, transport, and the social sector.
LON:INPP
GBp1.26+1.61%
Updated: Jun 18, 2025
Investment Funds
Bull & Bear Case
An overview of the main reasons to invest and the key risks involved.
Bull Case
Compelling NAV Discount
INPP trades ~15% below NAV, offering re-rating potential as sentiment and rates improve.
Resilient, Diversified Infrastructure Base
140+ global assets across essential sectors reduce volatility and ensure stable, low-risk income streams.
Bear Case
Illiquidity of Underlying Assets
INPP’s infrastructure projects are long-term and difficult to exit quickly without price concessions.
Persistent NAV Discount Risk
Limited liquidity and scepticism in UK trusts may sustain INPP’s NAV discount despite strong cashflows.
Policy and Political Uncertainty
Revenue depends on long-term government contracts that are vulnerable to political or regulatory shifts.
Executive Summary
International Public Partnerships
International Public Partnerships plc (INPP) is a FTSE 250-listed investment trust that provides long-term exposure to essential infrastructure assets backed by public-sector contracts. Launched in 2006 and advised by Amber Infrastructure: a specialist with deep experience in infrastructure origination, structuring, and asset management; INPP targets steady, inflation-sensitive returns through investments in operational schools, hospitals, energy networks, transport links, and digital infrastructure across the UK, Europe, and Australia.
Its £2.7 bn portfolio spans over 140 assets, with 99.7% of revenues derived from regulated or availability-based frameworks. These long-duration contracts offer highly predictable income that is largely insulated from economic cycles. As of June 2025, the trust delivers a 7% dividend yield, growing at 2.5%/annum and trades at nearly a 15% discount to NAV. With Amber’s track record, strong ESG alignment, and consistently high operational availability, INPP positions itself as a core holding for income-focused investors seeking stability, inflation protection, and capital efficiency.
Investment Thesis
Overview of buy and sell case of the business.
Why Invest?
Key pieces of information about the business that you need to know about.
Inflation-Linked Income
INPP’s revenues are structurally indexed to inflation via government contracts and regulated asset frameworks. The fact that the majority of the trust’s income adjusts directly with inflation metrics has supported consistent real dividend growth. This design makes the trust particularly attractive during periods of elevated inflation, offering a hedge for income-seeking investors while maintaining visibility on long-term cash flows.
Compelling NAV Discount
The current 15% discount to NAV presents a significant opportunity, especially given the trust’s stable underlying performance. Management has responded with targeted buybacks, improved investor communication and opportunistic asset disposals. This includes their recent partial disposal of their stake in FHSP for £30 mn. These efforts, combined with structural tailwinds, position the trust for a re-rating as market conditions and sentiment improve.
Resilient, Diversified Infrastructure Base
INPP owns over 140 infrastructure assets across nine countries and multiple essential sectors, including energy, transport, education, healthcare, and digital infrastructure. This broad diversification insulates the portfolio from idiosyncratic shocks and ensures stable, recurring income across economic cycles. Many assets are backed by public-sector counterparties, reducing default risk and enhancing visibility on long-term returns. The result is a low-volatility, income-focused portfolio built for durability.
Catalysts
The key events that could drive investment opportunities and shift markets.
Strategic Capital Deployment
INPP recently completed disposals including the Three Shires Portfolio and FHSP, and is actively recycling capital into higher-return opportunities. Disposals of maturing or non-core assets help maintain portfolio quality and funding flexibility. These actions improve return-on-capital and signal disciplined capital management, supporting long-term dividend stability through operational, not speculative, means.
Tailwinds from Falling Rates
Interest rates have been falling in the EU and UK, easing INPP’s future refinancing costs and inflation-linked liabilities, improving net cashflow margins. At the same time, lower discount rates used for asset valuation will lift reported NAV, even without new investments. This macro shift enhances dividend headroom and strengthens coverage ratios, giving the trust more flexibility in capital allocation and income distribution.
Riding the Infrastructure Wave
Global infrastructure investment is accelerating as governments tackle ageing public assets, urban population growth, and decarbonisation targets. INPP is structurally aligned with these long-term trends through its holdings in energy transmission, healthcare facilities, social housing, and regulated utilities. Its SFDR Article 8 classification also makes it investable for ESG-screened funds, increasing long-duration capital access and positioning the trust to benefit from consistent multi-cycle demand.
Key Risks
Key pieces of information about the business risks that you need to know about.
Inherent Illiquidity Risks
INPP’s assets, including regulated utilities, schools, hospitals, and energy networks, are held through long-term SPVs and PPP contracts. While they provide stable income, they are not easily tradable. This means if the trust wants to sell assets to fund buybacks, pay down debt, or pivot strategy, it may face delays or be forced to accept discounts. In fast-moving macro environments, this illiquidity limits responsiveness and optionality.
Sustained Discount to Net Asset Value
Despite INPP’s strong fundamentals, it trades at a material discount to NAV due to weak investor sentiment toward UK-listed trusts. Structural issues, such as limited liquidity, retail outflows, and ETF competition, may prevent a full re-rating. Even with targeted buybacks and operational strength, the discount may persist unless broader demand for closed-ended funds meaningfully improves.
Exposure to Policy Instability and Political Shifts
INPP relies on long-term government contracts and regulated revenues for its income. Political turnover, shifting public investment priorities, or fiscal tightening could lead to changes in contract terms, delays in payments, or regulatory resets. This is particularly relevant in sectors like social infrastructure, which are heavily dependent on governments. Despite their diversified exposure, INPP cannot fully eliminate political and jurisdictional risk.
Follow the Experts
Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.
Expert Insights
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"Many of the investment trusts that operate in this area offer a stable, but steadily increasing stream of dividends. A good example is INPP, which is a member of Fidelity’s Select 50 list of handpicked funds."
Expert Insights
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"All divestments have taken place at prices in line with the most recently published valuations prior to disposal, suggesting that the NAV valuations are robust."
Expert Insights
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"INPP's strategy has underpinned the company’s strong track record of delivering consistent and predictable returns for investors, while delivering environmental and/or social benefits."
Expert Insights
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"Infrastructure spending is also poised for substantial growth in developed economies ... many developed nations are recognising the counterproductive nature of past austerity measures and are working on ways to reverse this"
Investor Materials
Access the most recent investor updates published by the company.
INPP
International Public Partnerships: Further measures to combat the discount
ArticleAnnual Report 2024
PDF2024 Fact Sheet
PDFExternal Insights
A curated collection of third-party content relevant to the company and sector to help inform your investment decision.
Investment Trusts
Cash in on the Thames ‘super sewer’ fund that’s on a 24pc discount
ArticleSignals from International Public Partnerships’ board suggest the share price will improve
Team
Meet the experienced professionals leading our organization
Mike Gerrard
Giles Frost
Stephanie Coxon
Julia Bond
What the Pro's Are Asking
Here are the questions that professional investors are asking before making an investment decision.
How does INPP generate income if revenues do not depend on usage or demand?
INPP’s revenues come from availability-based and regulated contracts, meaning it gets paid simply for keeping assets operational and compliant, not based on usage volumes. For example, it earns income from a hospital or school as long as the facility meets agreed performance standards. In 2024, INPP’s portfolio achieved 99.7% availability, exceeding targets and securing full payment. This structure ensures high cash flow predictability, independent of economic or demand shocks.
What role does Amber Infrastructure play in INPP’s performance?
Amber Infrastructure acts as INPP’s exclusive investment adviser, responsible for originating, executing, and managing all investments. With over 15 years of experience advising INPP, Amber brings deep expertise in infrastructure structuring, public-private partnerships, and long-term asset optimisation. Its close relationships with government counterparties and its ability to actively manage SPVs ensure operational efficiency, value retention, and disciplined capital deployment across a globally diversified portfolio.
How does INPP manage its discount to NAV?
INPP has taken several steps to address its current 15% discount to NAV. These include selective share buybacks, adjusting the Amber Infrastructures fee to be a combination of NAV & market cap, and improved investor communications. While broader UK trust sector sentiment remains weak, management focuses on capital discipline, recycling proceeds into higher-return opportunities, and maintaining dividend coverage. Though pricing is market-driven, these actions help reinforce long-term value and shareholder alignment.
What differentiates INPP from other infrastructure funds?
INPP’s differentiators lie in its strict focus on operational, contracted infrastructure, mostly in social and regulated sectors and its long-standing partnership with Amber Infrastructure. Unlike some peers, it avoids construction risk and speculative development. The portfolio’s 99.7% exposure to availability-based or regulated cash flows gives it one of the highest revenue predictability profiles in the listed space. This low-volatility, inflation-linked income stream appeals to institutional and retail income investors alike.
How does INPP align with ESG mandates and broader macro themes like net-zero?
INPP directly supports environmental and social objectives through assets like regulated energy networks, low-carbon OFTOs (offshore transmission), schools, healthcare facilities, and justice infrastructure. It’s classified as an SFDR Article 8 fund, reflecting active ESG integration. These real assets contribute to energy transition and inclusive public service delivery. As governments scale net-zero investment and institutional allocators prioritise ESG-compliant vehicles, INPP stands to benefit from long-duration capital alignment and policy tailwinds.