No London-listed infrastructure funds have any exposure to ISG, the construction company and UK government contractor that went into administration last Friday.
The failure highlights the importance of sub-contractors to the PFI projects, said analyst Iain Scouller at Stifel, who took the opportunity to run the rule over the various exposures of funds with sizeable PFI projects.
ISG's failure is the biggest insolvency in the sector since Carillion in 2018, which Scouller pointed out did cause some material issues for the listed PFI funds which had exposure to the contractor at the time.
Shares in the investment trusts went into discounts to NAV following the Carillion failure as they were forced to find new contractors, faced problems with construction defect indemnities and later took provisions against their exposure to Carillion as a sub-contractor.
Looking at current exposures, the analyst said a key point was that the exposures are "relatively well diversified, which reflects a lesson learned from the Carillion administration".
HICL Infrastructure Company Limited (LSE:HICL) has its largest facilities management exposure to Bouygues at 13% of the portfolio.
International Public Partnerships Ltd's (LSE:INPP) largest service provider exposure is to Infrabel at 8% of the portfolio.
BBGI Global Infrastructure's largest exposure is to Capilano Highway Services, which is contracted for the Golden Ears Bridge project in Canada, which represents 11% of the portfolio.
The GCP Infrastructure Investments Ltd portfolio is less exposed to PFI project sub-contractors, given PFI/PPP is only 26% of the portfolio, but Scouller notes that it does have some sizeable renewables sector service providers, with the largest one being WPO UK Services, accounting for 21% of the portfolio.