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INFRASTRUCTURE
laurence ireson
Posted: 09 December 2017 20:41:23(UTC)
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many thanks KING LODOS i to hold HICL but favour increasing my INTERNATIONAL PUBLIC PARTNERSHIP holding
MikeT
Posted: 09 December 2017 21:04:27(UTC)
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HICL seemed to hold up quite well during 2008/09.

I've had a cursory glance on Morningstar and it looks around 75% in the UK with holdings in hospitals, roads and public buildings etc. I'd be interested to know if they have been consistent with their asset allocations over the years.

It does look like they have a degree of exposure to UK politics - I wouldn't have thought a Corbyn led government would be a positive!

I had thought about FS Global Infrastructure but HICL does give pause for thought.
2 users thanked MikeT for this post.
laurence ireson on 09/12/2017(UTC), I predict a riot on 11/12/2017(UTC)
King Lodos
Posted: 10 December 2017 00:28:44(UTC)
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Apparently half of HICL's portfolio is in PFI contracts – which Labour's threatened to nationalise..

This explains the nerves .. But a rereading is that they'd review PFI contracts and consider bringing some in-house .. To get some perspective, the size of the PFI market is £60bn .. Larger than the EU divorce bill.

I was surprised how much the premium had fallen .. Maybe I'm underestimating the risks, or maybe investment trusts really do tend to overshoot on these things?
2 users thanked King Lodos for this post.
Tim D on 10/12/2017(UTC), dlp6666 on 18/12/2017(UTC)
Mr Helpful
Posted: 10 December 2017 10:17:18(UTC)
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laurence ireson;54082 wrote:
many thanks KING LODOS i to hold HICL but favour increasing my INTERNATIONAL PUBLIC PARTNERSHIP holding


International Public Partnership has that nice 'International' ring to it, to limit any UK political interference?

But last time I looked found the main Infrastructure Funds UK allocations were :-
HICL : 80% UK
INPP : 75% UK
BBGI : 42% UK
3IN : 36% UK

For now we are staying 3IN with a dash of BBGI (and NG.).
The last IMHO also claims a stake as very much 'Infrastructure' .

The other aspect worth evaluating is the type of assets involved.
Citywire did a useful article on this sector about two months ago.
Sorry can't find the link!
1 user thanked Mr Helpful for this post.
laurence ireson on 10/12/2017(UTC)
Chris Howland
Posted: 10 December 2017 11:27:38(UTC)
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John Baron's IC Income Portfolio recently re-opened a position in HICL. In this months article (Dec 8th issue) he reports increasing his holding.

I bought in a while ago after Labour statement on PFI contracts and will increase this next week.

Chris

4 users thanked Chris Howland for this post.
laurence ireson on 10/12/2017(UTC), David BB on 10/12/2017(UTC), Andrew Smith 259 on 17/12/2017(UTC), dlp6666 on 18/12/2017(UTC)
Tim D
Posted: 10 December 2017 15:12:47(UTC)
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Mr Helpful;54099 wrote:
The other aspect worth evaluating is the type of assets involved. Citywire did a useful article on this sector about two months ago. Sorry can't find the link!


Mid-November there was this (and the previous day this).

First link contains:

Quote:
Numis has not only looked at the underlying assets held by each infrastructure trust but even considered bookies’ odds on how likely Labour is to win. For example, Numis reckons John Laing is most exposed to political risk with 68% of its assets in PFI deals, followed by HICL with 63% and 3i relatively disinterested at 12%. It adds that bookies’ odds suggest there is only a 33% probability that Labour will win an outright majority.


Prompted me to buy some JLIF the same day at 118.76p to complement my existing HICL holding.
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Mr Helpful on 10/12/2017(UTC)
Andrew Smith 259
Posted: 17 December 2017 13:09:27(UTC)
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At the moment I’m in both HICL AND John Laing Environmental Asset Group (JLEN).

If Corbyn does win next election and if Labour do attempt to bring PFI in house I can see a lot of lawyers getting rich. I doubt if companies like HICL and JLEN will give up without a fight. After all I think most PFI contracts have exit penalties.

The Corbyn money tree will need to grow much bigger to be able to support all their barmy ideas.
King Lodos
Posted: 17 December 2017 15:10:28(UTC)
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Portillo raised an interesting point: that Corbyn wouldn't want to risk getting in before we're out of Europe – so he can maintain his unclear position to the unwashed masses (who don't want to accept he's a huge Euroskeptic who wants nothing short of a hard Brexit).

So that should mean Tories are safe till 2019 .. I have doubts Corbyn wants to get in at all
4 users thanked King Lodos for this post.
Tim D on 17/12/2017(UTC), Andrew Smith 259 on 17/12/2017(UTC), dlp6666 on 18/12/2017(UTC), dd on 22/12/2017(UTC)
Stephen B.
Posted: 17 December 2017 16:15:22(UTC)
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What Corbyn wants may not be relevant, the risk is that the delicate power balance in the government falls apart. In the next few weeks the government is going to have to start being clear what it wants from the EU, so far it has been deliberately obscure but that can't continue once it starts negotiating.
2 users thanked Stephen B. for this post.
Andrew Smith 259 on 17/12/2017(UTC), Tim D on 17/12/2017(UTC)
King Lodos
Posted: 17 December 2017 18:17:36(UTC)
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The problem is you can't negotiate when the other side can see your hand.

It disappoints me there are those who want power more than they want the country to get a good deal, and they're using our own bargaining hand and future prosperity as leverage .. Every time Corbyn asks for details, it's details that would weaken our position – and this from someone who doesn't actually want to have anything to do with negotiations

7 users thanked King Lodos for this post.
Mickey on 17/12/2017(UTC), jvl on 17/12/2017(UTC), Andrew Smith 259 on 17/12/2017(UTC), Keith Hilton on 17/12/2017(UTC), JohnW on 17/12/2017(UTC), dlp6666 on 18/12/2017(UTC), dd on 22/12/2017(UTC)
Stephen B.
Posted: 17 December 2017 18:27:38(UTC)
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I doubt the government knows what its hand is - it's been reported that the cabinet doesn't yet have an agreed position. To negotiate you need to know what it is you really want and which things can be negotiated away, and it isn't obvious to me that there will be any agreement on which is which. I suspect it's also unrealistic to imagine that there won't be leaks from whoever is on the losing side.
King Lodos
Posted: 17 December 2017 18:48:12(UTC)
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That's the narrative the opposition want to push .. May and Corbyn know perfectly well we can't make those details public.

The reality is (so far) things are going significantly better for May than anyone expected, with both the opposition and media trying to create the impression of chaos, for their own aims rather than the country's
6 users thanked King Lodos for this post.
Andrew Smith 259 on 17/12/2017(UTC), Keith Hilton on 17/12/2017(UTC), JohnW on 17/12/2017(UTC), Guest on 18/12/2017(UTC), Guest on 18/12/2017(UTC), dlp6666 on 18/12/2017(UTC)
citymoke
Posted: 18 December 2017 01:04:41(UTC)
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It's been mentioned that HICL concentrates mainly on UK infrastructure, so to spread the risk a bit, I've opted to add to my portfolio with the Legg Mason IF RARE Global Infrastructure Income Fund which, as the title suggests, invests mainly in world infrastructure investments with just a small percentage involving the UK.

Note that it is a fund though and not an investment trust, so I would expect the charges to be higher, but in this case the Legg Mason fund appears to be cheaper than the HICL trust!
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