If you can’t find the answer to your question below, please contact HICL's Administrator & Company Secretary whose contact details are available here.
These FAQs are general in nature and are not intended to provide specific investment, financial, legal, accounting or tax advice, nor do they seek to make any recommendations about the suitability of HICL shares for any particular investor. If you require any such advice, please consult a suitably qualified professional adviser.
HICL does not fall within the HMRC’s definition of an offshore fund for UK resident investors. Further information may be found on HMRC’s website (see www.hmrc.gov.uk/manuals/ofmanual/Index.htm).
No. Following the receipt of legal advice, the Board has confirmed that it conducts the Company’s affairs, and intends to continue to conduct the Company’s affairs, such that the Company would qualify for approval as an investment trust if it were resident in the United Kingdom. It is the Board’s intention that the Company will continue to conduct its affairs in such a manner and that IFAs should therefore be able to recommend its Ordinary Shares to ordinary retail investors in accordance with the FCA’s rules relating to non-mainstream investment products.
HICL is a member of The Association of Investment Companies (“AIC”). Ongoing Charges, in accordance with AIC guidance, are defined as annualised ongoing charges (i.e. excluding acquisition costs and other non-recurring items) divided by the average published undiluted net asset value in the period. On this basis, the Company’s Ongoing Charges Percentage for each of the last five financial years is set out in Financial Performance.
There are no performance fees paid to any service provider.
Further information regarding The Association of Investment Companies may be found via the following external link; www.theaic.co.uk.
The Company does not have a benchmark per se, but the FTSE 250 index is used to show relative performance.
The Company’s ticker is HICL:LN, and its ISIN and SEDOL codes are GB00B0T4LH64 and B0T4LH6, respectively.
The Company’s annual results are normally published in May (in respect of its financial year ended 31 March) and its interim results are normally published in November (in respect of the six months ended 30 September). Please refer to the Corporate Calendar for further information.
Investment Adviser: InfraRed Capital Partners Limited
Administrator & Company Secretary: Aztec Financial Services (Guernsey) Limited
Broker: Canaccord Genuity Limited
Financial PR: Tulchan Communications LLP
Registrar: Link Asset Services
Auditor: KPMG Channel Islands Limited
Some commonly-used acronyms appear throughout the website. An explanation of what each stands for and its general meaning is as follows:
ESG – ‘Environmental, Social & Governance’, is the catch-all term for the criteria used in socially-responsible investing. It refers to the three main areas of concern that have developed as central factors in measuring the sustainability and ethical impact of an investment in a company or business.
FM – ‘Facilities Management’, an interdisciplinary field devoted to the integration of the planning, development and management of a wide range of services, both ‘Hard’ (e.g. building fabric) and ‘Soft’ (e.g. catering, cleaning, security, mailroom, and health & safety), that the client has contracted the private sector to perform for the asset. The ultimate aim of the FM activities is to facilitate and improve the effectiveness of an infrastructure asset’s primary activities vis-a-vis its end users (e.g. teachers and children in a school; or doctors, nurses and patients in a hospital).
IPO – ‘Initial Public Offering’, being the first sale of Company’s shares to the public and date of its launch on the London Stock Exchange.
KPI – ‘Key Performance Indicators’, a set of quantifiable measures used to gauge or compare performance in terms of meeting their strategic and/or operational goals. In an infrastructure project, KPIs are commonly-used for measuring the success of the supply chain relative to the standards of the client, as stipulated in the project contracts. An example might be maintaining the building temperature within a certain range, or answering help desk queries within a specified time period.
PPP / PFI – Please see ‘Portfolio & Investment’ tab above.
SPV – ‘Special Purpose Vehicle’, also more generally referred to as a ‘project company’, is a legal entity (usually a limited company) established by the private sector to act as the contracting party with the public sector client with respect to the arrangements relating to the infrastructure asset. Equity funders such as the Company will comprise the shareholders. As the entity contracting with the client to finance, construct and operate the relevant infrastructure asset, the SPV will also be the counterparty to the supply chain entities (construction and FM parties) and the debt financers. A unique SPV will be used for each infrastructure project to avoid any ‘cross-contamination’ of assets or liabilities between the different projects.
Iconography is used in the Portfolio section of the website to provide users with a quick visual ‘flag’ for a project’s status or sector designation, as follows:
An infrastructure project which is in its construction phase
An infrastructure project which is in its operational phase
An infrastructure project servicing accommodation needs
An infrastructure project servicing education needs
An infrastructure project servicing fire, law & order needs
An infrastructure project servicing health needs
An infrastructure project servicing transport needs
An infrastructure project servicing water needs
Portfolio & Investment
Infrastructure may be defined as the fundamental services and systems serving a country, city or area, for example transportation and communication systems, power plants and social buildings (such as schools and hospitals). Further details are available in the Primer Papers.
Public–Private Partnerships (PPPs / P3s) are a model of public procurement whereby the funding and operation of a public infrastructure service or project is achieved through the involvement of private sector capital and expertise. The service or project is structured through a partnership of the government on the one hand, and one or more private sector organisations (known as the consortium), via a specific ‘Project Company’, on the other.
A PPP involves a contract between the public sector authority and the Project Company, in which the Project Company provides the infrastructure service or project - such as a hospital, school or transport link - and assumes substantial and long-term financial, technical and operational risk in the venture. The Project Company will in turn sub-contract the various responsibilities and risks inherent in the project to each of the underlying consortium members, as applicable. In return for fulfilling this role, the Project Company will receive a revenue stream from the procuring public sector client in the form of a regular ‘Unitary Payment’ which is used to meet the operational costs of the infrastructure project, service the debt financing obligations and reward equity investors such as HICL.
While the United Kingdom was first to make systematic use of a PPP model, in the form of the Private Finance Initiative (PFI), PPPs have now been adopted in many countries as part of the wider programme of privatisation, driven by an increased need for accountability and efficiency for public spending.
Further details of the arrangements for, and the economics of, infrastructure investment are available in Strategy and Investment Policy.
HICL shares are eligible for inclusion in NISA/ISAs and PEPs (subject to applicable subscription limits) provided that they have been acquired by purchase in the market, and they are permissible assets for SIPPs.
The Company’s shares are traded on the London Stock Exchange. If you are confident in making your own investment decisions you can do this by buying your shares directly through a stockbroker or through an execution-only dealing service. Your bank or building society may offer a dealing service; however, many alternatives are available so you should investigate which is best for your needs.
No representation regarding the suitability of HICL’s shares is intended or implied. If you require advice before you invest, an appropriate financial adviser should be consulted.
The Chairman, through Link Asset Services, writes to new shareholders periodically to ask if they require paper copies of the Company’s statutory documents or communications. If you do not elect to continue receiving paper copies, you will instead be sent a notification by post whenever a relevant document/communication is published on the Company’s website.
Alternatively, if you are happy to be removed from paper communication completely, and to just receive email notifications following the publication of statutory or other shareholder documentation, you can register your email address directly with Link Asset Services.
If you have not received a letter from Link Asset Services yet, or you wish to change your current preferences in respect of either of these services, instructions can be found in Shareholder Services.
HICL normally pays dividends on a quarterly basis, on or around the last business day in March, June, September and December of each year. It is expected that the quantum of each quarterly dividend will be approximately one-quarter of the forecast dividend for the year with the final quarterly dividend being adjusted as necessary.
An approved investment trust is a company which the Commissioners of HMRC are satisfied meets all of the conditions set out in section 1158 CTA 2010. HICL is not resident in the United Kingdom, and so it does not meet all of these conditions. Accordingly, HICL is not eligible for inclusion in an offshore bond.
No stamp duty (or SDRT in the context of paperless transactions) is payable on the purchase of shares in a Guernsey company - the duty only applies to shares in UK companies or foreign companies who maintain their share register in the UK. Your financial advisor should be able to clarify any liabilities.
The Company currently offers a scrip dividend alternative for shareholders who wish to receive new ordinary shares in lieu of cash. In doing so, shareholders increase their holdings without incurring dealing costs or stamp duty. Shareholders who wish to take advantage of the scrip dividend alternative should complete (if they have not already done so) a Scrip Dividend Mandate, which sets up a standing election for the reinvestment of all dividends. A Scrip Dividend Mandate can be cancelled at any time.
A copy of the Mandate is available at the back of the most recent Scrip Dividend Circular, which can be found in Circulars & Related Notices.
Please refer to page 99 of the most recent Prospectus which can be found here. Please note that this section provides a generic overview of relevant tax issues at the time of the Prospectus’s issue (in February 2017), and that investors should obtain their own specific and up to date financial and tax advice.
Shareholders not tax resident in Guernsey
Under current tax arrangements, provided the Company maintains its exempt status, the Company’s distributions, whether paid in cash or as a scrip dividend, are made to Shareholders (not being Guernsey tax resident) without giving rise to a liability to Guernsey income tax. Furthermore, the Company is not required to withhold Guernsey tax on such distributions.
Shareholders tax resident in Guernsey
Shareholders who are resident for tax purposes in Guernsey (which includes Alderney and Herm) will incur Guernsey income tax at the applicable rate on a distribution, whether received in cash or as a scrip dividend from the Company. Provided the Company maintains its exempt status, there is no requirement for the Company to withhold tax from the payment of a distribution to a Guernsey resident Shareholder.