GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — VT Gravis Clean Energy Income Fund — Investor Presentation (September 2022)
39 slides from GCP Asset Backed Income Fund's investor presentation, September 2022
Slide 1: VT Gravis Clean Energy Income Fund
CLEAN ENERGY VT GRAVIS CLEAN ENERGY INCOME FUND September 2022
Slide 2: Contents
CONTENTS 3 Introduction to clean energy 11 Introduction to the fund 16 Fund characteristics 22 Clean energy investment credentials 28 Appendix CLEAN ENERGY 2
Slide 3: Introduction to clean energy
Introduction to clean energy CLEAN ENERGY 3
Slide 4: What is clean energy?
WHAT IS CLEAN ENERGY? The sustainable energy association defines clean energy as ‘energy derived from renewable, zero-emissions sources (“renewables”), as well as energy saved through energy efficiency (“EE”) measures’. Solar Wind Hydro Energy Storage Energy Efficiency Bioenergy Smart Grid Geotherma
Slide 5: Renewable power generation
RENEWABLE POWER GENERATION Renewable power generation accounts for the significant majority within the electricity supply mix by 2050. Installed renewable power generation capacity growth dominated by solar and wind. CLEAN ENERGY IRENA Global Renewables Outlook: Energy Transformation 2050 5
Slide 6: Energy efficiency & flexible power grids: significant investment required
ENERGY EFFICIENCY & FLEXIBLE POWER GRIDS: SIGNIFICANT INVESTMENT REQUIRED Climate change commitments require significant expenditure on a range of initiatives and related infrastructure in addition to renewable power generation capacity. Opportunities in energy efficiency projects, the electrificati
Slide 7: Key investible areas in clean energy sector
KEY INVESTIBLE AREAS IN CLEAN ENERGY SECTOR Operational & Cash generative Renewable Energy assets such as Wind, Solar, Hydro & Biomass plants. SPV Investment company CLEAN ENERGY 7
Slide 8: Key investible areas in clean energy sector
KEY INVESTIBLE AREAS IN CLEAN ENERGY SECTOR Companies making energy generation and supply cleaner and more efficient ▪ Coal and oil account for over 57%1 of total global energy supply ▪ Large and growing market for companies involved in making energy generation and supply cleaner and more efficient
Slide 9: Investment examples
INVESTMENT EXAMPLES We invest in… CLEAN ENERGY 9
Slide 10: Key attractions of the sector
KEY ATTRACTIONS OF THE SECTOR Electricity from clean sources is a significant contributor to the world’s growing need for increased power. Long dated and dependable income ▪ Income streams generated by Renewable Energy assets, in the form of subsidy payments and revenue from power sales, tend to be
Slide 11: Introduction to the fund
Introduction to the fund CLEAN ENERGY 11
Slide 12: VT Gravis Clean Energy Income Fund
VT GRAVIS CLEAN ENERGY INCOME FUND The Fund is an open ended investment company UK UCITS V investing in the Global Clean Energy sector. ▪ Fund size as at 31 August 2022 was £591.15m ▪ Designed to give regular income, preserve capital and protect against inflation ▪ Comprised of Yield Co Equity, Clos
Slide 13: Risk profile of target clean energy sectors
RISK PROFILE OF TARGET CLEAN ENERGY SECTORS Operational Assets & Greenfield Assets, Operational Assets Contracted Cash Flows Construction Stage Assets Commercial Exposure Mid-length fixed PPAs Increasing Volatility Element of merchant Supply chain & power price exposure commoditised industries Devel
Slide 14: Investment philosophy and security selection process
INVESTMENT PHILOSOPHY AND SECURITY SELECTION PROCESS FACTORS DRIVING INVESTMENT DECISIONS The Fund is exposed to a broad range of clean energy investments with a focus on the stability and security of quarterly distributions. Yield sustainability Investment is focused on companies with: - Mature tec
Slide 15: Suitability
SUITABILITY The Fund is aimed at investors seeking stable long term dividend income, low volatility, capital protection and growth. REAL ASSETS INCOME DRAWDOWN The Clean Energy sector is To provide investors with Provides capital protection in diverse and offers low regular, sustainable dividends pe
Slide 16: Fund characteristics
Fund characteristics CLEAN ENERGY 16
Slide 17: Fund guidelines and characteristics
FUND GUIDELINES AND CHARACTERISTICS Limits within which the fund is managed; Wider Limits Current Portfolio Characteristics - Minimum of 80% of the portfolio is exposed to operational - - Number of holdings 35 availability based or contracted – renewable energy assets - Largest holding size of 6.10%
Slide 18: Fund performance
FUND PERFORMANCE C GBP Net Accumulation 18 December 2017 – 31 August 2022 400 S&P Clean Energy 350 MSCI World Infra VT Gravis Clean Energy Income Fund 300 250 200 150 100 50 Dec 17 Apr 18 Aug 18 Dec 18 Apr 19 Aug 19 Dec 19 Apr 20 Aug 20 Dec 20 Apr 21 Aug 21 Dec 21 Apr 22 Aug 22 Performance 1 month 3
Slide 19: Since launch risk & reward
SINCE LAUNCH RISK & REWARD Data as at 31 August 2022 Return 220 Average volatility S&P Global (18.14%) Clean Energy 200 180 160 140 120 VT Gravis Clean C Acc GBP 100 Average return (84.06%) 80 MSCI World 60 40 MSCI World Infrastructure 20 MSCI UK 0 0 5 10 15 20 25 30 Volatility Return Since Launch*
Slide 20: Portfolio construction
PORTFOLIO CONSTRUCTION Target exposure is to a broad range of Clean Energy investments with a focus on the stability and security of quarterly distributions. - c.79.6% of the portfolio is invested in companies that own - c.4.8% of the portfolio is invested in companies directly operational Renewable
Slide 21: Portfolio snapshot
PORTFOLIO SNAPSHOT Portfolio as at 31 August 2022 Top 10 holdings Underlying project exposure Atlantica Sustainable Infrastructure PLC 6.1% Wind 33.6% Greencoat UK Wind PLC 6.0% Solar 27.6% Clearway Energy Inc 5.4% Hydroelectric 6.2% Renewables Infrastructure Group Ltd 4.8% Energy Storage 5.9% Trans
Slide 22: Clean Energy Investment Credentials
Clean Energy Investment Credentials CLEAN ENERGY 22
Slide 23: Fund investment team
FUND INVESTMENT TEAM William Argent, CFA – Fund Adviser, Director George Nikolaou, CFA – Senior Research Analyst Will is a Fund Manager at Gravis having joined the company George is responsible for investment analysis and research, covering in 2017. He is the adviser to the VT Gravis UK Infrastructu
Slide 24: Wider Gravis team
WIDER GRAVIS TEAM Clean Energy Experience Phil Kent Phil Kent, a Director at Gravis, manages GCP Infrastructure Investments Ltd (c. £1bn). He works alongside a number of analysts who also provide a wealth of sector specialist knowledge for Will Argent to draw upon. Phil has been involved in the ener
Slide 25: Responsible investment
RESPONSIBLE INVESTMENT The Fund is managed in adherence to a clear Responsible Investment Statement Impact ▪ The Fund selects investments that have a significant involvement in the clean energy and decarbonisation theme: − Ownership and development of renewable energy assets and generation of clean
Slide 26: Gravis responsible investment approach
GRAVIS RESPONSIBLE INVESTMENT APPROACH We believe that integrating ESG considerations into investment management processes can help to create more successful and sustainable businesses over the long-term and generate enhanced value for our clients and society at large. • Gravis Responsible Investmen
Slide 27: Independent ratings
INDEPENDENT RATINGS Defaqto – ESG Reviewed Defaqto ESG Reviews for funds cover, among other things: • The fund’s or DFM ESG policy and how well the fund aligns to it • Product involvement, if any, in certain controversial areas • Any adherence to the UN SDGs • The asset management firm’s voting and
Slide 28: Appendix
Appendix CLEAN ENERGY 28
Slide 29: Investment universe
INVESTMENT UNIVERSE The total market cap for the investment universe is currently c.£770bn Security Total type Description Market Cap Equities in companies involved in the Renewable and Greener Equities >£200bn Energy sectors Green bonds enable capital-raising and investment for new Green bonds >£50
Slide 30: Project finance model in operation
PROJECT FINANCE MODEL IN OPERATION Special purpose vehicle established with the specific Regular and long dated payments from: purpose of segregating and • Contracted payments handling cash flows • Sale of energy output • Public sector support • Subsidies/Tax incentives Repayment Schedule FM, O&M Fi
Slide 31: Project finance cashflows
PROJECT FINANCE CASHFLOWS Uses of unitary payments arising from UK Infrastructure Project 250 200 Cash flow 150 Operations and Maintenance 100 Debt Equity 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Years Unitary payments service the cost of operations and maintenance, deb
Slide 32: Depth of projects within one fund
DEPTH OF PROJECTS WITHIN ONE FUND Each closed ended fund owns or invests in multiple Special Purpose Vehicles Terraform Power ~90 operating projects CLEAN ENERGY 32
Slide 33: Depth of projects within the fund – sample
DEPTH OF PROJECTS WITHIN THE FUND – SAMPLE The Fund invests in multiple closed ended funds, which own or invest in a diversified pool of SPV’s Multiple individual projects/assets Gresham TransAlta Greencoat Renewables John Laing Bluefield Solar Encavis Innergex 76 House ES Renewables UK Wind Infrast
Slide 34: Key terms
KEY TERMS VT Gravis Clean Energy Income Fund Fund Size £591.15m Dividend Yield Yield C shares 3.53% (as at 31 August 2022) Share Classes Clean & Institutional / Income & Accumulation / GBP, USD & EURO Minimum Investment £100 AMC I: 0.70% | C: 0.80% OCF* I: 0.70% | C: 0.80% Synthetic OCF** I: 1.28% |
Slide 35: Platforms & wrappers
PLATFORMS & WRAPPERS Available on the following platforms: Suitable for: 7IM Old Mutual/Quilter Direct investors Aegon Pershing SIPPs AJ Bell Prudential ISAs Allfunds Raymond James Charities Alliance Trust Savings SEI Offshore bonds Ascentric Standard Life – Elevate Companies Aviva Standard Life - W
Slide 36: Contact information
CONTACT INFORMATION Investment Manager and Dealing Valu-Trac Investment Management Limited Valu-Trac Dealing cleanenergy@valu-trac.com cleanenergy@valu-trac.com 01343 880217 01343 880344 Investment Adviser Will Argent Fund Adviser 020 3405 8552 william.argent@graviscapital.com George Nikolaou Senior
Slide 37: Investment and distribution
INVESTMENT AND DISTRIBUTION Investment Manager Investment Advisor Distribution Valu-Trac Investment Management Gravis Advisory Ltd. Gravis Advisory Ltd. Ltd. i. Gravis Advisory Ltd is owned and i. The team of five has assisted in i. Valu-Trac Investment Management managed by Gravis Capital raising o
Slide 38: Important notice
IMPORTANT NOTICE WARNING: The information in this Report is presented by Valu-Trac using all The information provided is "as is" without any express or implied warranty of reasonable skill, care and diligence and has been obtained from or is based on any kind including warranties of merchantability,
Slide 39: Investment ideas for the long run
INVESTMENT IDEAS FOR THE LONG RUN CLEAN ENERGY 39
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