An investment company invests in shares and securities (“stocks”) of other companies which in the case of ICGF are publicly listed companies in India. ICGF is an investment company which is closed ended, meaning it has a finite number of shares in issue. Consequently the company’s shares can only be bought from, and sold to, other shareholders. In the case of ICGF this is done through the Main Market of the London Stock Exchange where the company’s shares are listed
ICGF typically holds between 30-40 stocks in its portfolio of investments. The portfolio is managed by the Investment Manager, who selects stocks using a “bottom up” stock picking approach. All stocks go through a quantitative screening process and are monitored before being considered for inclusion in the portfolio. Stocks are given what the investment team deem to be a “fair value price” and it is at this price that stocks may be acquired.
Sometimes the share price of a listed investment company will differ from the market value of its net assets (NAV). If the share price is higher than the NAV, the company is described as trading at a premium. When the share price is lower than the NAV, the company is trading at a discount.
The spread is the difference between the price at which the listed shares are “offered” for sale and the price they are “bid” to purchase. This spread often depends on the supply and demand ‘liquidity’ of a particular listed share. In the case of ICGF, the spread has improved over time; this is a function of improved liquidity in the company’s shares as a result of increased market capitalisation (greater than £100m) and targeted marketing campaigns.
ICGF’s shares are listed and traded on the Main Market of the London Stock Exchange. They can be bought by placing an order with a stockbroker, using a platform (click here for more information) or by asking a professional adviser to act on your behalf. If you are not sure whether an investment company is the right investment for you, you should speak to a financial adviser.
ICGF is both a fund and a company. It is a Guernsey incorporated company with limited liability and its shares are traded on the Main Market of the London Stock Exchange. The company invests in a portfolio of stocks and is therefore often referred to as a fund. It doesn’t employ any staff, but does have a board of directors who are all independent and who are responsible for engaging specialist service providers to manage the company, including the investment manager.
The investment manager of ICGF is Ocean Dial Asset Management Limited (“Ocean Dial”) which is wholly owned by Avendus Capital Private Limited, an Indian-based investment bank registered with the Securities and Exchange Board of India (SEBI) and majority owned by Kohlberg Kravis Roberts (KKR) Funds.
The treatment of ICGF for personal and corporate tax purposes depends on each investor’s specific situation. ICGF’s shares are listed on the Main Market of the London Stock Exchange and qualify for ISA and/or SIPP investments. However you should seek independent advice on whether you are eligible for either ISA and/or SIPP investment prior to the purchase of the company’s shares.
The Directors are responsible for compliance with the Company’s stated investment objective and investment policy and have overall responsibility for the Company’s activities including the review of investment activity and performance and the control and supervision of the Investment Manager. All of the Directors are non-executive and are independent of the Investment Manager.
The Directors meet at least four times a year to, inter alia, review and assess the Company’s investment policy and strategy, the risk profile of the Company, the Company’s investment performance, the performance of the Company’s service providers, including the Investment Manager and Administrator, and generally to supervise the conduct of its affairs. The Company’s audit committee meets at least twice per annum.
ICGF is subject to the rules and regulations for investment companies trading on the Main Market of the London Stock Exchange (LSE). The Listing Rules are set by the UK Listing Authority and are available at: www.handbook.fca.org.uk/handbook/LR/. ICGF is also subject to the UK Disclosure and Transparency Rules, which are available at: www.handbook.fca.org.uk/handbook/DTR/. These rules and regulations provide for a high degree of transparency and disclosure, which collectively help to protect investor interests. ICGF has an independent board of directors, who endeavour to ensure that the Company complies with relevant best practice corporate governance frameworks, such as the UK Corporate Governance Code (the Code) and the Association of Investment Companies Code of Corporate Governance (the AIC Code), which adapts the Code specifically for investment companies.
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Historically the Company has not paid a dividend. The investment objective of the Company is long term capital appreciation so it is unlikely to pay a dividend in the future.
At the Company’s annual general meeting on 12 June 2018, the Directors were granted authority to repurchase up to 14.99 per cent. of the Company’s issued share capital during the period expiring on the earlier of the conclusion of the Company’s next annual general meeting and 31 December 2019. A similar buy-back authority will be sought at each subsequent annual general meeting of the Company.
The Directors each own shares in ICGF. For more information please click here.
The Investment Manager has no holdings in ICGF. However, the management team and some other members of staff are personally invested. For more information please click here.
ICGF has no directly comparable indices. The BSE Mid-cap Total Return Index would be the nearest comparable index and is therefore used as the Company’s “notional” benchmark.
ICGF does not publish a shareholder list.
The annual management charge per annum is 1.25% of the Company’s NAV, calculated and payable monthly. There is no performance fee.
ICGF’s NAV and shares are denominated in GB Sterling, while ICGF’s investment portfolio and most of its cash are all held in Indian Rupees which are not hedged as a matter of policy.
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