Earlier this year, the team behind the TM Gravis Digital Infrastructure Income Fund added a handful of bonds to the portfolio to help reduce volatility and increase the yield for investors.
In this video, Jacob Kett, Distribution Associate at Gravis, discusses the changes made to the TM Gravis Digital Infrastructure Income Fund. He uses Prologis as an example of how taking both equity and fixed income exposure can reduce volatility.
The transcript is below.
Chart of the month September 2026: Why add credit?
In May 2026, the Fund turned 5, and so what we did as part of that 5-year anniversary is we conducted a detailed review of the portfolio.
What was the outcome of the review?
Something we wanted to do for clients was to increase the yield of the portfolio whilst reducing the volatility. And the way we decided we could do that was by adding fixed income to the portfolio, and that allocation would be up to a maximum of 20%, with short duration, with a buy and hold to maturity, [and] with an average maturity of about 4 years.
Which fixed income names did you pick?
We took fixed income exposure through the equity names that we'd already researched. So, we've taken exposure in the names of Goodman Group, NextDC, and Prologis [for example]. And, as you can see on this Prologis chart, you've got the share price movement that goes through daily movements, and you've also got the fixed income exposure, which holds a bit steadier. But what's really interesting, if you get to the end of the chart, you can see that over those 3 years they've roughly come to the same point.
So, you know, you get some upside with the equity, but you maintain this steady exposure with the fixed income.
Important Information
This video is issued by Gravis Advisory Limited (“GAL” or the “Firm”), which is authorised and regulated by the Financial Conduct Authority. GAL’s registered office address is 24 Savile Row, London, United Kingdom, W1S 2ES. The company is registered in England and Wales under registration number 09910124.
TM Gravis Digital Infrastructure Income Fund (the “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 Authorise 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.
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