HICL says portfolio performing well, dividend on track

HICL chief Mike Bane said the investment company's portfolio had performed "well", calling attention to its defensive positioning and strong correlation to inflation.

Both, he said, defended HICL' net asset value.

"The Company continues to deliver on its asset recycling strategy, which enhances portfolio composition and supports asset valuations as well as providing a valuable source of funding when equity capital markets are closed," Bane added.

However, HICL said public market appeared to be applying higher UK Gilt yields to the perceived discount rates for alternative asset funds, but without taking into account the benefits of higher inflation.

At present, the implied inflation rate on the 30-year UK Gilt stood at roughly 3.4%, against the company's long-term UK inflation assumption of 2%.

Adjusting that assumption would boost HICL's NAV by 21.4p, the company said, explaining that would equate to an increase in HICL's weighted average discount rate from 1.1% to 8.3%.

The company also said that it remained on track to deliver its full-year target dividend of 8.25p per hare.

HICL shares edged up 0.3% to 131.6p during the session.