Many investors rely on fixed income for a low-volatility income allocation, but that stability can come at the cost of total return.
In this video, Craig Jenkins, Distribution Associate at Gravis, maps GCP Infrastructure Investments and the TM Gravis UK Infrastructure Income Fund against fixed income sectors, sector averages and listed peers over one year. He explains how both vehicles have combined a higher total return with lower volatility than the wider peer group, helped by Gravis's specialist focus on income.
The transcript is below.
Chart of the month October 2026: Optimising risk and return
This month's Chart of the Month is a risk-return chart over one year. On the x-axis we've got risk or volatility, and on the y-axis, total return, which includes distributions. And so what we've done is we've mapped GCP Infrastructure Investments and the [TM] Gravis UK Infrastructure Income Fund against fixed income sectors, some sector averages, and some listed peers.
Starting in the bottom left, you can see the fixed income sectors are exactly where you'd expect them to be: they're low risk, but they're low return.
If you move to the far right, you can see the listed peer group, and this is a peer group that's recently re-rated, hence the higher total return but higher volatility.
If you look into the middle of the chart, you can see GCP Infrastructure [Investments] and the [TM] Gravis UK Infrastructure Income Fund have a higher total return and lower volatility. Both of these have benefited from the re-rating of the sector, but this has been bolstered by Gravis's specialist focus on income. GCP Infrastructure [Investments] and the [TM Gravis] UK Infrastructure Income Fund are yielding at the moment about 9% and 6.3% respectively*.
So the chart makes a fairly simple point overall. If your income allocation is coming from just the fixed income sectors in the bottom left, yes, you receive low volatility, but also a much lower total return. If you look towards GCP Infrastructure Investments and the [TM] Gravis UK Infrastructure Income Fund, both of these vehicles are providing a higher total return, [are] higher yielding, and at a much lower volatility than the wider peer group and the sector average.
*Source: Gravis, as at 30 September 2026.
Important information
This video is issued by Gravis Advisory Limited (the “Investment Manager” or “GAL”)), and Gravis Capital Management Limited (the "Investment Adviser“ or “GCM”) and is for information purposes only. Both GAL and GCM are authorised and regulated by the Financial Conduct Authority and their registered office address is 24 Savile Row, London, United Kingdom, W1S 2ES.
TM Gravis UK Infrastructure Income Fund is a sub-fund of TM Gravis Funds ICVC, which is a UK UCITS scheme and an umbrella company for the purposes of the OEIC Regulations. The Authorised Fund Manager of TM Gravis Funds ICVC is Thesis Unit Trust Management Limited (TUTMAN), Exchange Building, St John’s Street, Chichester, West Sussex, PO19 1UP. TUTMAN is authorised and regulated by the Financial Conduct Authority. GAL is the investment manager of the Fund.
Neither GAL nor GCM offer investment advice and this video should not be considered a recommendation, invitation or inducement to invest in a Fund, or subscribe for, dispose of or purchase any such securities or enter into any other transaction in the GCP Infrastructure Investments Ltd (the “Company”), or any other fund affiliated with Gravis. Prospective investors are recommended to seek professional advice before making a decision to invest. The merits and suitability of any investment action in relation to securities should be considered carefully and involve, among other things, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of such securities. Any decision to invest in a Fund must be based solely on the information contained in the Prospectus, the latest Key Investor Information Document and the latest annual or interim report and financial statements.
Past performance is no guarantee of future performance. Your capital is at risk and you may not get back the full amount invested. Prospective investors should consider the risks connected to an investment in a Fund or Company, which include (but are not limited to) counterparty risk, inflation and interest rate risk and volatility. Please see the Risk Factors section in the Prospectus for further information.
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