Why Invest With HICL

Sustainable Yield

HICL’s principal financial objective is to earn a return that allows it to pay a predictable and sustainable quarterly interim dividend to its shareholders, as well as to preserve the capital value of the investment portfolio. Dividends have increased year-on-year since launch in 2006, with the Company having met or exceeded its dividend targets to date.

Capital Growth

In addition to a sustainable yield, through portfolio enhancement and value accretive investment selection, there is potential for an element of capital growth over the long-term. For the period since IPO until 31 March 2017, the total shareholder return has been 9.6% p.a., as measured by NAV appreciation and dividends, versus a long-term total return target of 7-8% p.a.1

Liquidity

With an average daily share trading volume of c.2.75m shares2, HICL provides shareholders with the ability to easily access an asset class which is, by its nature, highly illiquid due to the unquoted nature of the underlying investments and the typical size of any single project transaction.

Protection of Shareholders’ Interests

Important additional objectives are pursued by HICL’s Board and InfraRed to protect shareholders’ interests. These include:

  • Minimising investment concentration risk by providing access to a diversified portfolio of investments (in terms of clients, funders and supply chain contractors); and
  • Effective treasury and cost management by reducing income and balance sheet volatility through FX hedging, efficient cash management, as well as offering low management fees and ongoing charges.

Transparency, Responsibility and Robust Governance

As a listed public company, HICL publishes detailed trading and financial information at regular intervals. It maintains a policy relating to ESG matters and, through InfraRed, holds an A+ score in respect of the 2016 PRI Assessment for responsible infrastructure investment. Further, the Company, acting through InfraRed, seeks to continue to educate and inform shareholders about the infrastructure asset class.

HICL’s Investment Adviser, InfraRed Capital Partners Limited, is authorised and regulated by the UK Financial Conduct Authority. The investment company itself is a Guernsey registered, self-managed, non-EEA Alternative Investment Fund.

Institutional Backing

HICL has a diverse shareholder base, with approximately half of the shares being held by retail investors, and with the remainder owned by institutions, including local authority and corporate pension funds, insurance groups, mutual funds, charities, foundations and others.

 

  1. Past performance is not a reliable indicator of future performance. Long-term total return target IRR of 7-8% as set at the time of IPO.
  2. As at 31 March 2017.