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VT Gravis Clean Energy Income

The Fund

The VT 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).

Fund Summary

Fund Name
VT Gravis Clean Energy Income Fund
Fund Manager
William Argent
Investment Manager
Gravis Advisory Ltd
Launch Date
18 December 2017
Domicile
UK
Structure
UCITS V Open Ended Investment Company
Fund Size 14 Mar 2025
£235.58m
Regulatory Status
FCA Regulated
IA sector
IA Infrastructure
Share Classes
Inc & Acc
Currencies
GBP, EUR, USD

Clean share class

Price Acc 14 Mar 2025
129.74p
Price Inc 14 Mar 2025
94.95p
Minimum Investment
£100
AMC (capped)
0.80%
OCF (capped)
0.80%
ISIN Acc
GB00BFN4H792
ISIN Inc
GB00BFN4H461
SEDOL Acc
BFN4H79
SEDOL Inc
BFN4H46
Dividends paid
Jan, Apr, Jul, Oct
12 month dividend 14 Mar 2025, (Inc)
6.75p
Yield 14 Mar 2025, (Inc)
7.11%

Institutional share classes

Price Acc 14 Mar 2025
123.96p
Price Inc 14 Mar 2025
83.50p
Minimum investment
£10,000,000
AMC (capped)
0.7%
OCF (capped)
0.7%
ISIN Acc
GB00BFN4HF75
ISIN Inc
GB00BFN4HB38
SEDOL Acc
BFN4HF7
SEDOL Inc
BFN4HB3
Dividends paid
Jan, Apr, Jul, Oct
12 month dividend 14 Mar 2025, (Inc)
5.92p
Yield 14 Mar 2025, (Inc)
7.09%

Monthly commentary

The Fund recorded a gain of 4.06% in February (C Accumulation GBP), helping to recover much of the prior month’s loss. While underlying portfolio companies were evenly split in terms of the number of contributors and detractors, an announced takeover of Canadian independent power producer Innergex resulted in the positive contribution from that company (+85% in February, GBP-adjusted) dominating overall performance during the period.

Shortly after posting robust full year results, in which the company’s Free Cash Flow per share of CAD 1.06 exceeded the top end of management’s guidance, Innergex announced it had entered into a definitive agreement to be acquired by Caisse de depot et placement du Quebec for CAD 13.75 per share in cash. The price represents a 58% premium to Innergex’s price immediately preceding the announcement and an 80% premium to the 30-day volume weighted average share price as of 24th February. The deal is supported by Innergex’s Board and largest shareholder and is anticipated to complete by Q4 2025. Following other companies within the Fund that have been subject to M&A, the news provides further confirmation that portfolios of renewable energy assets and development pipelines are attractive to a variety of potential bidders.

Indeed, the CEO of Brookfield Renewables, which has been actively acquiring listed renewable energy companies (such as French developer Neoen) and direct assets (including stakes in large offshore wind assets in the UK) made it very clear in a recent interview that the gap between public market valuations and private market valuations in the sector is “very large right now” and that the company expected to see investment opportunities. Brookfield Renewables’ full year Trading Update noted that “The outlook for clean power is stronger than ever, with accelerating demand driven by corporate customers on the back of accelerating data centre development and broader electrification, which has only been further enhanced by the new U.S. administration's effort to drive investment… While we see potential for regulatory changes, we do not expect any material adjustments to the policies that have the greatest impact on our business, as these largely have bipartisan support…”. During 2024, the company generated a 16.6% increase in revenue and delivered dividend growth of 5%.

A new position was established in Terna Rete Elettrica Nazionale. Terna is Italy’s national electricity transmission network operator and a natural monopoly. It is Europe’s largest independent transmission grid operator with 75,000km of high voltage transmission lines across Italy. Terna’s core revenue model is driven by regulated grid transmission services and is sensitive to electricity demand rather than price, thereby introducing diversification benefits in the context of the broader portfolio. The company’s 2024-2028 Industrial Plan forecasts growth in its regulated asset base of 8% per annum with grid networks requiring significant investment to facilitate the integration of greater amounts of intermittent renewable energy generation in the supply mix as part of the transition to a lower carbon economy. Terna provides an attractive yield in excess of 4% and plans to grow the distribution by 4% per annum over the same 2024-2028 period.

The Fund continued to add to the position in Canadian independent power producer Northland Power, which now stands at an approximate 4% weighting. In order to maintain prudent allocations across some of the larger holdings in the Fund, modest sales were actioned in Greencoat UK Wind, The Renewable Infrastructure Group, Clearway Energy Inc. and Innergex. The Fund’s small holding in Triple Point Energy Transition was fully removed from the portfolio.

Read the factsheet here

Fund ratings

Investment Strategy

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.

Investment manager

The investment manager to the Fund is Gravis Advisory Ltd. 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.

The team

Administrator and service providers

Investment Manager

Gravis Advisory Ltd
24 Savile Row
London
W1S 2ES

Auditors

Johnstone Carmichael LLP
7-11 Melville Street
Edinburgh
EH3 7PE

ACD

Valu-Trac Investment Management Limited
Orton
Moray
IV32 7QE

Lawyer

Dickson Minto W.S
16 Charlotte Square
Edinburgh
EH2 4DF

Depositary

NatWest Trustee & Depositary Services Ltd
Trustee & Depositary Services
Younger Building
1st Floor, 3 Redheughs Avenue
Edinburgh
EH12 9RH

Distributor

Gravis Advisory Ltd
24 Savile Row
London
W1S 2ES

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