Infrastructure investment trusts have been a bright spot in an otherwise difficult 2022.
These funds purchase infrastructure assets – such as hospitals and schools – and benefit from predictable, inflation-resistant rental income over long periods.
These features proved invaluable at a time when prices soared, stock markets fell and bonds came under pressure.
The £3.3bn HICL Infrastructure Trust is offering investors a 4.8% yield and has generated a healthy share price return of 9% in the past year, down from 2.6% for its competitors.
Edward Hunt of InfraRed Capital Partners, the manager of HICL, discusses whether infrastructure assets can continue to rise, the “valuable lesson” he learned from the collapse of Carillion in 2018, and whether it s expect the trust’s 6% premium to change in the near future.
How do you invest?
HICL provides access to the critical infrastructure we see around us in our daily lives.
It is a diversified portfolio of private core infrastructure investments that offers investors stable income, strong and predictable returns, cash flows that will last approximately 30 years, and stocks that are expected to rise based on inflation and don’t always fall when the broader stock market does.