The TM Gravis Clean Energy Income Fund invests in a portfolio of securities listed in developed markets, involved in the operation, funding, construction, generation and supply of clean energy.
The Fund is a UK UCITS V open-ended investment company (OEIC).
The Fund recorded a modest loss of 1.67% in September (C Accumulation GBP). The portfolio rallied strongly in the later stages of the month, recovering from a more significant decline that was evident midway through the period. Looking year to date, the Fund has delivered 6.35% (C Accumulation GBP).
Underlying portfolio companies were broadly evenly split between positive and negative contributors. However, poor performance from a handful of UK-listed renewable energy generators including Octopus Renewables Infrastructure, Foresight Environmental Assets, NextEnergy Solar and Aquila European Renewables shifted the overall balance of returns at Fund level. The performance of this cohort was largely a continuation in trend from August.
In the U.S., a favourable ruling on Revolution Wind, an offshore project backed by Orsted that was subject to a stop-work order issued by the Trump Administration in August, despite being 80% complete, provided the impetus for a rally in clean energy developers operating in the region. A ruling that construction could resume at the project buoyed companies such as EDP Renovaveis, which has exposure to the U.S. offshore wind market potential via its Ocean Winds joint venture with Engie. Separately, U.S. Treasury yields softened at the mid-to-long end of the curve, providing a boost to capital providers in the sector like HA Sustainable Infrastructure and to clean energy infrastructure giants that aim to be highly acquisitive in the sector, like Brookfield Renewables.
During the month, positions in Northland Power, Meridian Energy, Brookfield Renewables, Acciona Energias Renovables, and EDP Renovaveis were reduced following strong relative performance. A new position was established in Redeia, which via its subsidiary “Red Electrica”, operates Spain’s electricity transmission network infrastructure. Redeia is sensitive to electricity demand/usage rather than price, which provides useful diversification in the context of the Fund’s primary exposure to electricity generation and sale. Redeia adds to the existing position in Italy’s Terna Rete Elettrica and increases the portfolio’s underling exposure towards regulated electricity grid infrastructure.
Third quarter distribution announced
Income distributions for the third quarter of 2025, payable in October 2025, amounted to 1.4478p per C Income GBP unit and 1.2738p per I Income GBP unit. As at 30th September, the Fund’s trailing 12-month yield was 6.24% for the C Income GBP units and 6.23% for the I Income GBP units.
The Fund invests in a diversified portfolio of securities listed in developed markets, involved in the operation, funding, construction, generation and supply of clean energy.
The investment manager to the Fund is Gravis Advisory Limited. The Gravis team can call on a wealth of experience and expertise in infrastructure investing across a broad range of sectors.
William Argent is the fund manager.
Gravis Advisory Limited
24 Savile Row
London
W1S 2ES
Telephone: +44 (0)20 3405 8550
Email: contact.us@graviscapital.com
William Argent
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