However, in recent days it has retreated almost 5%. Included within the John Laing Group is an asset management division. This division generates income for the group by managing funds and portfolios, which invest in infrastructure projects, using other investors money and charging a fee for the service. One of these being the John Laing Infrastructure Fund Ltd (JLIF), which is available to the public to invest in. Now in this particular fund lies the reason behind the share price decay. John Laing Infrastructure Fund Ltd (JLIF) recently announced its link to the spectacularly collapsed Carilion. It revealed nine operational public-private partnership projects where Carillion is the facilities management provider, approximately 8.5 per cent of JLIF’s total portfolio. This saw the price of the fund crash 14%, which had a knock-on effect on the share price of the John Laing Group, since management fees from the fund form part of the group’s income.
However, the same announcement assured investors that it has had contingency plans for Carillion’s collapse in place for some time and that they are already beginning to appoint replacement contractors. What’s more the fund confirmed there are no project currently under construction where Carilion is a contractor. To summarise, the report found there to be “no significant areas of concern”.