GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — VT Gravis Digital Infrastructure Income Fund — Investor Presentation (June 2023)
48 slides from GCP Asset Backed Income Fund's investor presentation, June 2023
Slide 1: VT Gravis Digital Infrastructure Income Fund
GRAVIS - DIGITAL —" INFRA VT GRAVIS DIGITAL INFRASTRUCTURE INCOME FUND JUNE 2023 Gravis 5?
Slide 2: Contents
CONTENTS 3 The Opportunity 11__ Digital Infrastructure 18 Introduction to the Fund 45 Appendix GRAVIS DIGITAL INFRA
Slide 3: The Opportunity
THE OPPORTUNITY Gravis
Slide 4: The Fourth Industrial Revolution
THE FOURTH INDUSTRIAL REVOLUTION Now 1st Industrial Revolution 24 Industrial Revolution Mechanisation Mass Production Steam engine powered Electricity and oil-power driving mechanisation mass production revolution GRAVIS DIGITAL INFRA 3rd Industrial Revolution Automated Production Computer and inter
Slide 5: Revolutionising Our Lives
REVOLUTIONISING OUR LIVES 4th Industrial a Revopition — Work Play Live LA] 2 \) an EE au a A 4 \ A> SharePoint NETFLIX ocado at slack @ spotity AU shopify 2 amazon —A | twitch) | ® fs GIG) Gees Data Centres Digital Networks Telecoms Towers 5G Networks Urban Logistics E-commerce Facilities Fulfilment
Slide 6: The Perpetual Data Cycle
THE PERPETUAL DATA CYCLE More data drives the creation of more apps More apps create more data More apps and more data requires more bandwidth More bandwidth requires more digital infrastructure New technologies drive incremental data creation: Smart home/office/city Semi-autonomous/autonomous manuf
Slide 7: Uber Spotify Pinterest
Uber Spotify Pinterest Instagram TikTok ChatGPT
Slide 8: Key Digitalisation Trends
KEY DIGITALISATION TRENDS Accelerating growth in data volumes and e-commerce penetration Data E-Commerce Penetration Volume of data/information created, captured, copied, and Online sales as % of total retail sales? consumed worldwide! 200 30% 180 25% 160 g S 140 20% £ ® 120 x 8 100 15% 3 ‘oO o 80 5
Slide 9: Digital Infrastructure Assets
DIGITAL INFRASTRUCTURE ASSETS Digital infrastructure companies enable the digital world and are distinct from technology companies. DIGITAL SUB-SECTORS pe ) a oe om ne ome _—_ Communication Data centres Fibre networks & Logistics warehouses Software Hardware Payment towers energy storage systems - A
Slide 10: -100 -300 -500
700 130 500 120 300 110 100 100 -100 90 -300 80 70 -500
Slide 11: Digital Infrastructure
DIGITAL INFRASTRUCTURE Gravis
Slide 12: Digital Infrastructure Business Models
DIGITAL INFRASTRUCTURE BUSINESS MODELS Moving from an analogue world to a digital world creates rental income opportunities. Physical asset ® i Leasing space for communications equipment Leasing space for servers Income generation Average unexpired Average unexpired lease length lease length 7.7 yea
Slide 13: Communications Towers
COMMUNICATIONS TOWERS Communication towers support antennas for telecommunications, wireless internet and broadcasting. Key Facts Unique Mobile Users? ¢ Mobile network data traffic grew 42% between Q3 2020 and Q3 520bn 2295" 2021! 5.13bn . 5.00bn ¢ 302 tower companies own 3.66m of the worlds 5.08m t
Slide 14: Data Centres
DATA CENTRES Physical facilities that house computer systems needed to store, process, and disseminate data and applications. Key Facts ¢ London colocation market supply stands at 839 MW IT load, the largest market in Europe with nearly 38 percent of the market share.! ¢ In 2021, nearly 110 MW of ne
Slide 15: Fibre Optics and Smart Grid Networks
FIBRE OPTICS AND SMART GRID NETWORKS Fibre Optics + Fibre-optic cable can be made up of a few, to hundreds of optical fibres within a plastic casing. * Terrestrial and subsea cable networks use fibre as it is the only technology that can handle high capacity, transferring data at the speed of light.
Slide 16: Logistics Facilities
LOGISTICS FACILITIES E-commerce companies are increasingly using automated big box warehouses to store and dispatch goods. The trend towards ever shorter delivery times is driving increasing demand for urban logistics facilities. Key Facts Online Sales as a Percentage of Total Retail Sales? ¢ The gr
Slide 17: Listed Digital Infrastructure Champions
LISTED DIGITAL INFRASTRUCTURE CHAMPIONS Developed markets listed companies championing the digital infrastructure universe €, PROLOGIS’ iman SEGRO Market Cap — £16.2bn IPO Date — December 1949 Market Cap — £90.9bn IPO Date — November 1997 rN AMERICAN TOWER: Market Cap — £24.4bn IPO Date — June 1995
Slide 18: Introduction to the Fund
INTRODUCTION TO THE FUND Gravis
Slide 19: Fund Overview & Objectives
FUND OVERVIEW & OBJECTIVES Objectives To achieve capital growth through market cycles! Aiming to deliver c.3% dividend yield2 Inflation-linked characteristics Key Information The VT Gravis Digital Infrastructure Income Fund is a UK UCITS V OEIC Diversified portfolio of transferrable securities inclu
Slide 20: Proven Investment Process
PROVEN INVESTMENT PROCESS FUND ACTIVE CONSTRUCTION MANAGEMENT Ensure diversification & COST across the global digital AWARENESS infrastructure sector through security selection Seeks opportunities to minimise the entry price RISK MANAGEMENT Focus onhigher quality companies with relativelylow to mode
Slide 21: Portfolio Construction — Liquidity and Quality
PORTFOLIO CONSTRUCTION — LIQUIDITY AND QUALITY ‘Source: Gravis Advisory Ltd GRAVIS DIGITAL INFRA Global Digital Infrastructure ¢.125 Listed Companies Liquid & Tradable 75+ Listed Companies Focused Digital Infrastructure 70+ Listed Companies >£650bn combined market cap >£2bn average daily volume VT G
Slide 22: Investment Process — Multi-Factor Criteria
INVESTMENT PROCESS — MULTI-FACTOR CRITERIA GRAVIS DIGITAL INFRA Factors Driving Discretionary Investment Decisions ofa Attractive valuation & Inflation hedging characteristics Daily liquidity D Growing dividends Cashflow dependability/visibility &> Credibility of management team 0) Sustainability as
Slide 23: Portfolio Construction — Security Selection Is Key
PORTFOLIO CONSTRUCTION — SECURITY SELECTION IS KEY REITs can be worth much more than the external valuer’s assessment Property valuation Valuers assign is an art. no portfolio premium. The net asset value (NAV) is NAVs just sum merely an estimate’. individual property values. Management matters. Val
Slide 24: Portfolio Construction — Building a Diversified Portfolio
PORTFOLIO CONSTRUCTION — BUILDING A DIVERSIFIED PORTFOLIO The Fund invests in multiple REITs, which own or invest in a diversified pool of properties. VT GRAVIS DIGITAL INFRASTRUCTURE INCOME FUND j f \ Portfolio of REITs & Investment Companies Crown Castle Cogent Comms Keppel DC REIT Goodman Celinex
Slide 25: Contractual Rent Growth
CONTRACTUAL RENT GROWTH c.70% of the portfolio has either fixed uplifts or inflation-linked escalators Lease lengths and rent profiles VANTAGE TOWERS 0) 2 4 6 8 10 Weighted average unexpired lease term (WAULT) ‘Estimated based on company materials. WAULT and rent profile data taken from Company Data
Slide 26: Inflation Proofing: Long Leases and Rent Escalators
INFLATION PROOFING: LONG LEASES AND RENT ESCALATORS a — CATENA woe >] WDP CROWN 96 Cae SS Ss « SEGRO 41% 53% ~ °O 2 4 6 8 ‘For the tower business only 2Estimated based on company materials WAULT and rent profile data taken from Company Data and/or Investor Relations GRAVIS DIGITAL INFRA Weighted Ave
Slide 27: Inflation Proofing: Income Growth and Fixed Rate Debt
INFLATION PROOFING: INCOME GROWTH AND FIXED RATE DEBT Rents Debt c.70% of the portfolio has either fixed uplifts or inflation-linked c. 77.8% fixed rate debt escalators. c. 2.4% weighted average cost of debt c. 6.0 years average debt tenor Av. Cost of Av. Debt T % Fixed or Investment Sector Rental I
Slide 28: Reversionary Rent Growth
REVERSIONARY RENT GROWTH Rent reversion can be viewed as embedded growth. Reversion helps to offset any outwards shift in valuation yields and raising financing costs. Market rents above current contractual rents. 80.0% 70.0% Rent reversion spread Summit Industrial Income REIT Prologis Dream Industr
Slide 29: Digital Infrastructure Assets Outperforming
DIGITAL INFRASTRUCTURE ASSETS OUTPERFORMING 5-year annualised return (31.05.17 - 31.05.22)! 17.9% 167% 9.9% 9.7% 7.1% ET llr 09% US Govt Inflation Rate? 2.8% Global Equities Global REITs Global Corporate Industrial & Infrastructure Data Centre Logistics REITs REITs Infrastructure Bonds BBB Bonds, 10
Slide 30: All Sub-Sectors Performing
ALL SUB-SECTORS PERFORMING All sub-sectors have delivered strong returns Data centres have delivered the highest returns driven primarily by M&A activity Contribution analysis by underlying sector (31.05.21 - 31.05.22)! Total Return Sector Average Weight (Holding Period) Gross Contribution to Return
Slide 31: Responding to Climate Change: Pathway to Net Zero
RESPONDING TO CLIMATE CHANGE: PATHWAY TO NET ZERO The Fund is less carbon intensive than most global indices More portfolio holdings are publishing Net Zero roadmaps Carbon Intensity (GHG Scope 1+2 CO?tonnes per $m)! Net Zero roadmaps? 989.6 325.2 1% 971 125.1 142.4 Global REITs VT Gravis Digital Gl
Slide 32: Responding to Climate Change: Setting Ambitious Targets
RESPONDING TO CLIMATE CHANGE: SETTING AMBITIOUS TARGETS The energy efficiency of assets is increasingly important. Obsolescence risk is reduced through investing in companies owning and developing high quality assets. Asset Class Cc. switch Data Centres Communication on CROWN Towers J CASTLE €} PROL
Slide 33: Optimistic Management Outlook
OPTIMISTIC MANAGEMENT OUTLOOK Data Centres ec Logistics BEES ® « > Cell Towers Networks il ‘Source: Gravis Advisory Limited Research GRAVIS DIGITAL INFRA "With IDC forecasting digital technology spend to grow eight times faster than the broader economy in 2023, today's businesses are seeking the rig
Slide 34: Attractive Development Pipelines
ATTRACTIVE DEVELOPMENT PIPELINES Development pipelines deliver superior returns to investors in specialists REITs! Fund Underlying Asset Exposure? Developments, 19.1% Income Producing _ Assets, 80.9% ___ MC Digital Realty Data Centre, Tokyo - MCC Mitaka. High energy efficiency of PUE: 1.22 . Develop
Slide 35: Private Equity Acquiring Public Equity
PRIVATE EQUITY ACQUIRING PUBLIC EQUITY The Fund has benefited from private equity takeover activity Portfolio Holding Bidder Announcement Date Takeover Premium June 2021 +21% “© CyrusOne. KKR Siltheoue November 2021 +25% EL UNIT! Brookfield | March 2022 +59% nvestors . << h vicirac diode ifm May 202
Slide 36: Positive Dividend Growth Outlook
POSITIVE DIVIDEND GROWTH OUTLOOK DPS growth outlook for the Fund is superior to both inflation forecasts and market dividend growth 2022 Underlying DPS growth outlook vs. inflation forecasts 9.86% 7.69% pm nnn nnn nnn nnn ne mmm mmm mmm nnn mmm nnn n nnn n nnn nan 7.20% 4.19% 3.90% VT Gravis Digital
Slide 37: Portfolio Exposure and Top Holdings
PORTFOLIO EXPOSURE AND TOP 10 HOLDINGS Portfolio as at 31 May 2023 Company American Tower Corp Prologis Inc Equinix Inc SEGRO PLC Goodman Group SBA Communications Corp Crown Castle International Corp Gresham House Energy Storage Fund PLC Infrastrutture Wireless Italiane SpA Celinex Telecom SA Holdin
Slide 38: Reliable Distributions and Cost Savings
RELIABLE DISTRIBUTIONS AND COST SAVINGS High single-digit trailing annualised dividend growth Dividends Quarterly since inception* to 31 March 2023 i Tel] 2021 1.2196p e ™Q2 2022 2.5141p =Q3 2028 0.5714p aa 0.0 0.5 1.0 15 2.0 2.5 3.0 Cost Savings Since inception, the Fund has made savings of 42bps b
Slide 39: Performance Since Launch
PERFORMANCE SINCE LAUNCH Performance from 31 May 2021 to 31 May 2023 130 125 120 115 110 105 100 95 90 May 21 Nov21 Returns May 22 —MSCI World Infrastructure MSCI World IMI Core Real Estate —VT Gravis Digital Infrastructure Income Fund C Acc Nov 22 May 23 1Month VT Gravis Digital Infrastructure Inco
Slide 40: Appendix
APPENDIX Gravis
Slide 41: Fund Investment Team
FUND INVESTMENT TEAM Matthew Norris, CFA — Director of Real Estate Securities & Fund Adviser Matthew is the lead adviser to the VT Gravis UK Listed Property Fund and the VT Gravis Digital Infrastructure Income Fund. He has more than two decades investment management experience and has a specialist f
Slide 42: Key Terms
KEY TERMS Fund Size Yield (C Inc GBP) Share Classes Minimum Investment Annual Management Charges Fund operating charges* Synthetic OCF** Launch Date Launch Price Valuation and trading Investment Association Sector Holdings Number of holdings Distributions Classification Currencies £ISINs & SEDOLs £3
Slide 43: Gravis Responsible Investment
GRAVIS RESPONSIBLE INVESTMENT Gravis’ Commitments Gravis Responsibe Investment Policy GRAVIS DIGITAL INFRA Committed to running operations on a carbon-neutral basis by 2023 Signatory to the Principles for Responsible Investment since January 2019 Participant in the UN Global Compact Network Abide by
Slide 44: Platforms and Wrappers
PLATFORMS AND WRAPPERS Available on the following platforms Aegon Allfunds Aviva Barclays Canada Life Citi Bank Close Brothers Embark Ifidelity FNZ Hargreaves Lansdown Hubwise Interactive Investor J Brearley Novia GRAVIS DIGITAL INFRA Nucleus Old Mutual/Quilter Pershing Raymond James Seven IM Standa
Slide 45: Contact Information
CONTACT INFORMATION Investment Manager and Dealing == Valu-Trac Investment Management Limited = 01343 880217 digitalinfrastructure@valu-trac.com Valu-Trac Dealing 01343 880344 Investment Adviser Matthew Norris Fund Adviser, Director of Real 020 3405 8553 matthew.norris@graviscapital.com Estate Secur
Slide 46: Investment and Distribution
INVESTMENT AND DISTRIBUTION Investment Manager Valu-Trac Investment Management Ltd. i. Valu-Trac Investment Management Limited was established as an authorised investment manager in 1989. ii. Valu-Trac Investment Management Limited launched Valu-Trac Administration Services in 2010, to provide Autho
Slide 47: Important Notice
IMPORTANT NOTICE Warning The information in this Report is presented by Valu-Trac using all reasonable skill, care and diligence and has been obtained from or is based on third party sources believed to be reliable but is not guaranteed as to its accuracy, completeness or timeliness, nor is it a com
Slide 48: Gravis
Gravis INVESTMENT IDEAS FOR THE LONG RUN
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