HICL Infrastructure PLC Ord

Specialist

New for 2020. A superior entry point for infrastructure investing

We like infrastructure for its income and growth credentials but have replaced our 2019 choice, Renewables Infrastructure Group, with HICL Infrastructure for 2020.

The two investment trusts have similar yields, but HICL’s shares usually trade at a lower premium to net asset value. However, new investors need to time their entry carefully as the premium can spike above 10%. Analysts at broker Stifel upgraded the trust to ‘buy’ in December 2019, after the UK general election result took the nationalisation risk for private finance initiative projects and utility companies off the political agenda for at least five years.

HICL aims to deliver long-term, stable income from a well-diversified portfolio of infrastructure investments positioned at the lower end of the risk spectrum. It includes projects and assets that support communities, facilitate the delivery of essential public services and benefit from long-dated, predictable cash flows and good inflation correlation. The portfolio comprises more than 100 investments across various sectors: accommodation (such as government buildings), education, fire, law and order, health, transport, electricity, gas and water in the UK, North America and Europe.

Investment activity is focused on three market segments: public-private partnerships (schools, hospitals and roads, for example); regulated assets (energy transmission and water utilities); and demand-based assets where revenue risk is mitigated (operational toll roads with traffic history or student accommodation).

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
HICL Infrastructure PLC Ord
Manager
InfraRed Capital Partners Ltd
Type
Closed Ended Investment Company
ISIN
GB00BJLP1Y77
Sector
Sector Specialist: Infrastructure
Launched
29/03/2006
OCF
1.09 %
3 Year Sharpe
0.37
Yield
5.5 %
Benchmark
Not Benchmarked
Fund Size
£ 3.19 billion
NAV
152
Gearing
100
Discount Premium
14
The Company seeks to provide investors with long-term distributions, at levels that are sustainable, and to preserve the capital value of its investment portfolio over the long term with potential for capital growth from a diversified portfolio of infrastructure investments positioned at the lower end of the risk spectrum. The strategy of Company is to maintain a disciplined and proactive approach to investment and asset management, while executing its three-pillar business model of preserving and enhancing the value of the existing portfolio and making accretive new investments.
Holding %
Bouygues 16.99 %
Engie 12.99 %
In House 11.99 %
Balfour Beatty 8.99 %
Network Rail 7.00 %
Egis 7.00 %
Colas 7.00 %
Mitie 5.00 %
Sodexo 4.00 %
Siemens 3.00 %
Region %
Eurozone 100.00 %
Sector %
Industrials 100.00 %
Name
InfraRed Capital Partners Ltd
Address
SW1Y 4QU, London, United Kingdom
Legal Structure
Closed Ended Investment Company

Managers

Harry Seekings
Joined 05/24/2017

Harry joined InfraRed in 1998 and is one of InfraRed’s partners. Harry has the day-to-day responsibility for leading the InfraRed team in relation to HICL. Harry returned to London in July 2015, almost seven years after relocating to New York to head the team responsible for originating new infrastructure investments in North America. While in New York, Harry led InfraRed’s business development activities in North America and InfraRed’s participation in public-private partnerships procurements in Canada and the USA. He originated investment opportunities and led the team that won a number of social infrastructure and transportation investments in the USA and Canada. On joining in 1998, Harry was initially a member of the project finance advisory team and then transferred to HSBC's structured capital markets team for a period of two years, with responsibility for originating and structuring financings for public-private partnerships, returning to InfraRed in 2004. Harry has over 15 years’ experience working on infrastructure financings from advisory, debt and equity perspectives. Harry holds a BA in Modern History from the University of Oxford and a Masters in Philosophy in European Studies from the University of Cambridge.

Data provided by Morningstar.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.