VT Gravis Funds ICVC - VT Gravis Clean Energy Income Fund C GBP Accumulation

Specialist

New for 2020. Attractive income stream from a clean energy theme

VT Gravis Clean Energy Income is a relatively new fund, having been launched in December 2017. It is listed among interactive investor’s ACE 30 ethical fund recommendations, and we feel it o ers income-seeking investors something different.

The fund invests in companies engaged in the provision, storage, supply and consumption of clean energy, and aims to deliver a regular income of 4.5%, paid quarterly.  e fund has done very well in capital terms over the past year, up 34%; that has pushed the yield down to 2.5%, but this may prove temporary.

The fund specialises in long-term infrastructure, property and asset-backed investments. Will Argent, the fund’s adviser, has managed this fund since inception. As well as producing income, he aims to preserve investors’ capital throughout market cycles and offer potential for capital growth.

At the end of 2019, he was sitting on a relatively large cash balance with the intention of participating in two imminent equity raises, one a follow-on placing and the other a new company launch. He says he was keen to refresh the portfolio by rotating into better-value opportunities, to bolster the natural income profile of the fund following the appreciation and corresponding yield contraction in some core positions throughout 2019.

The portfolio has most of its assets in the UK and US. It mainly accesses investments through investment trusts in the UK and ‘yield co-equities’ elsewhere. These are companies formed to own operating assets that produce a predictable cash flow, primarily through long-term contracts.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
VT Gravis Funds ICVC - VT Gravis Clean Energy Income Fund C GBP Accumulation
Manager
Valu-Trac Investment Management Limited
Type
Open Ended Investment Company
ISIN
GB00BFN4H792
Sector
Global
Launched
20/11/2017
OCF
0.8 %
Yield
3.4 %
Benchmark
Not Benchmarked
The investment objective of the VT Gravis Clean Energy Income Fund is to generate income and preserve capital with the potential for capital growth. The sub-fund will aim to meet its objectives by investing primarily in listed equities whose primary activity or exposure is within the clean energy sector. In addition to investing in equities, the subfund may also invest in other transferable securities, bonds, collective investment schemes, money market instruments, deposits, cash and near cash.
Holding %
Atlantica Sustainable Infrastructure PLC 9.38 %
TransAlta Renewables Inc 7.62 %
Renewables Infrastructure Grp 6.43 %
NextEnergy Solar Ord 5.98 %
JLEN Environmental Assets Group Ord 5.78 %
TerraForm Power Inc Class A 4.70 %
US Solar Fund Ord 4.61 %
Gresham House Energy Storage Ord 4.49 %
Hannon Armstrong Sustainable Infrastructure Capital Inc 4.37 %
Aquila European Renewables Income Fund 4.26 %
Region %
United States 35.69 %
Canada 27.29 %
United Kingdom 21.60 %
Eurozone 7.39 %
Australasia 5.07 %
Sector %
Utilities 79.62 %
Real Estate 9.53 %
Industrials 8.05 %
Name
Valu-Trac Investment Management Limited
Address
IV32 7QE, Orton, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Data provided by Morningstar.

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