The VT Gravis Clean Energy Income Fund will launch on 1 December investing in a globally diversified portfolio of 31 listed securities whose operations are linked to clean energy generation.
This includes exposure to mature operational wind, hydro and solar projects that generate long-dated stable cashflows.
Gravis anticipates the fund will provide an annual yield of 4.5%, paid quarterly and net of charges which are capped at 0.8%. It will also seek to preserve and grow capital over time and protect from inflation.
Core holdings will initially be in yield companies (54.9%), closed-ended investment companies (29.4%) and equities (15.7%).
In terms of geography, the exposure is 32.4% to US, 30.4% UK, 10.75% in Canada and 26.45% in Europe and rest of the world.
The top holding is 8point3 Energy at 6.60%, followed by Greencoat UK Wind (5.75%) and Saeta Yield SA (5.55%).
William Argent of Gravis, and fund adviser to the VT Gravis Clean Energy Income Fund, said: “Supported by government initiatives, improved technology and a shift in social awareness of climate change and sustainability, clean energy has evolved to become a huge, reliable and dependable industry since the turn of the decade and now forms an important component of the global energy generation mix today.”
Stephen Ellis, Chairman of Gravis Capital Management, added: “We are delighted to be launching this fund. Gravis has invested over £500m in renewable energy projects over the last five years and understands the sector well. Our aim is to deliver dependable returns for our investors, and this fund is a perfect marriage of our expertise and the requirements of our investors.”
