GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — VT Gravis UK Infrastructure Income Fund — Investor Presentation (January 2023)
37 slides from GCP Asset Backed Income Fund's investor presentation, January 2023
Slide 1: VT Gravis UK Infrastructure Income Fund
UK VT GRAVIS UK INFRASTRUCTURE INCOME FUND January 2023
Slide 2: Contents
CONTENTS Introduction to infrastructure 2 Introduction to the Fund 7 Fund characteristics 11 Appendix 17 UK INFRA
Slide 3: Introduction to infrastructure
Introduction to infrastructure UK INFRA 2
Slide 4: What is infrastructure?
WHAT IS INFRASTRUCTURE? Infrastructure assets provide the services and facilities necessary for a society and economy to function successfully. They range from small single assets such as GP surgeries to projects as complex as Crossrail. Accommodation / Social Power networks Hospitals / GP housing S
Slide 5: Why infrastructure matters
WHY INFRASTRUCTURE MATTERS It is involvement in long-term projects that offer a human dimension, investing in assets required by the UK for years to come, such as hospitals, schools, student accommodation and energy generation. Investments are generally underpinned by obligations of UK central and l
Slide 6: Key investible areas in infrastructure sector
KEY INVESTIBLE AREAS IN INFRASTRUCTURE SECTOR Operational & cash generative infrastructure assets such as student accommodation buildings, power networks, transport, renewable energy sources, schools and hospitals Investment SPV company UK INFRA 5
Slide 7: Investment examples
INVESTMENT EXAMPLES We invest in… Market Cap – £3.4bn Market Cap – £893m Market Cap – £38bn Market Cap – £3.4bn IPO Date – June 2014 IPO Date – November 2018 IPO Date – May 2017 IPO Date –April 2019 Market Cap – £3.2bn Market Cap – £509m Market Cap – £707m Market Cap – £636m IPO Date – July 2013 IPO
Slide 8: Introduction to the Fund
Introduction to the Fund UK INFRA 7
Slide 9: VT Gravis UK Infrastructure Income Fund
VT GRAVIS UK INFRASTRUCTURE INCOME FUND Key Information Responsible Investment − The Fund is a UK UCITS V open ended investment company investing in ‒ Managed in adherence to a corporate level Responsible the UK listed infrastructure sector Investment Statement: ▪ Impact − Designed to give regular i
Slide 10: Investment philosophy
INVESTMENT PHILOSOPHY FACTORS DRIVING INVESTMENT DECISIONS ACTIVE FUND Fair valuation MANAGEMENT CONSTRUCTION Ensure diversification across & COST the UK listed infrastructure AWARENESS Low relative volatility sector seeks opportunities to minimise the entry price. Inflation hedging RISK MANAGEMENT
Slide 11: Risk & volatility in the UK infrastructure sector
RISK & VOLATILITY IN THE UK INFRASTRUCTURE SECTOR GRAVIS UK INFRA Availability Regulated Demand Market Higher risk Health Power Education Energy distribution Increasing volatility Emergency services Waste water Council buildings Renewable energy Toll roads De-regulated utilities Rail Infrastructure
Slide 12: Fund characteristics
Fund characteristics UK INFRA 11
Slide 13: Fund performance – since launch
FUND PERFORMANCE – SINCE LAUNCH C GBP Net Accumulation & MSCI UK 25 January 2016 – 31 December 2022 180 MSCI UK VT Gravis UK Infrastructure Income Fund 170 160 150 140 130 120 110 100 90 Jan 16 Jan 17 Jan 18 Jan 19 Jan 20 Jan 21 Jan 22 Dec 22 Annualised Since Performance 1 month 3 months 12 months 3
Slide 14: Dividends
DIVIDENDS Quarterly since inception* – 31 December 2022 Dividends declared net of charges for C GBP Income share class 20166 4.5940p Q1 2017 5.2578p Q2 2018 5.8153p Q3 2019 Q4 5.1096p 2020 5.1441p 2021 4.2808p 2022 5.0085p 0 1 2 3 4 5 6 7 Past performance is not necessarily a guide to future perform
Slide 15: Volatility profile rolling months
VOLATILITY PROFILE ROLLING 12 MONTHS Monthly since inception vs other asset classes, as at 31 December 2022. 35% 30% 25% 20% Volatility 15% 10% 5% 0% Jan 16 Jan 17 Jan 18 Jan 19 Jan 20 Jan 21 Jan 22 Dec 22 Fund MSCI UK MSCI World MSCI World Infrastructure UK 10 Yr Gilts Past performance is not neces
Slide 16: Fund performance
FUND PERFORMANCE Fund performance vs. a selection of indices during greatest drawdown period for those indices. Review period 25 January 2016 to 31 December 2022. Performance during times of stress 50% 40% 30% 20% 10% 17/01/2020 – 23/03/2020 20/02/2020 – 16/03/2020 20/02/2020 – 23/03/2020 12/08/2016
Slide 17: Portfolio snapshot
PORTFOLIO SNAPSHOT As at 31 December 2022 Top 10 holdings Underlying project exposure Greencoat UK WIND PLC 7.14% Renewables Infrastructure Group Limited 7.14% Wind 16.3% HICL Infrastructure Fund Limited 6.97% Electricity & Water 11.8% Solar 14.7% Sequoia Economic Infrastructure Income Fund Ltd 6.73
Slide 18: Appendix
Appendix UK INFRA 17
Slide 19: Fund investment team
FUND INVESTMENT TEAM William Argent, CFA – Fund Adviser, Director Will is a Fund Manager at Gravis having joined the company in 2017. He is the adviser to the VT Gravis UK Infrastructure Income Fund and VT Gravis Clean Energy Income Fund. Will has 18 years’ experience working as a buyside analyst an
Slide 20: Independent ratings
INDEPENDENT RATINGS Rayner Spencer Mills Research RSMR include the VT Gravis UK Infrastructure Income Fund on their research platform Dynamic Planner, Distribution Technology Based on analysis by DT looking at asset allocation and historical performance of the Fund, the VT Gravis UK Infrastructure I
Slide 21: 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 22: ESG disclosures
ESG DISCLOSURES Sustainablility Disclosure Environmental Impact Social Governance Sustainability Sustainability Sustainability Board Holding Asset Energy Carbon Enable/Produce/Co Board Policy Reporting Targets Emissions Diversity Female Gender Pay Health & Safety Board Gender Members PRI SFDR TCFD C
Slide 23: Key terms
KEY TERMS Sustainability targets The implementation of sustainability targets to Emissions & energy The calculation and reporting of greenhouse gas provide a framework for ESG activities. These targets consumption emissions or energy consumption. Greenhouse gas can include a commitment to the provis
Slide 24: Project finance model in operation
PROJECT FINANCE MODEL IN OPERATION Special purpose vehicle established with the specific purpose of Regular and long dated payments such as: segregating and handling cash flows • Contracted payments • Rent • Subsidies Repayment Schedule FM, O&M Finance Capital in Payments out Equity Debt SPV Debt in
Slide 25: 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 26: Depth of projects within one fund
DEPTH OF PROJECTS WITHIN ONE FUND Each closed ended fund owns or invests in multiple Special Purpose Vehicles Greencoat UK 35 projects UK INFRA 25
Slide 27: 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 GCP Infra HICL Bluefield Greencoat Primary Health 3i Renewables JLEN 50 118 Solar UK Properties Infrastructure Infrastruc
Slide 28: Infrastructure outlook
INFRASTRUCTURE OUTLOOK HM Government has a substantial pipeline of 682 planned infrastructure projects over the next 10 years in the UK. No. of Total Sector projects & programmes (£bn) Communications 11 £6.85 Education 21 £14.04 £413.1bn Energy 96 £189.19 Flood 28 £2.40 Health 22 £4.88 Home Office 2
Slide 29: Correlation comparison
CORRELATION COMPARISON 25 January 2016 – 31 December 2022 The VT Gravis UK Infrastructure Income Fund is less volatile, as it sits in more of a bond or alternatives bucket. Comparison Correlation Return Volatility Yield VT UK Infrastructure Income Fund - 46.2% 9.7% 4.6%* MSCI UK 0.40 66.7% 16.7% 3.7
Slide 30: Valuations & premiums
VALUATIONS & PREMIUMS Listed Investment Company premiums on 31 December 2022 Company Name Price NAV Premium/Discount 3I Infrastructure PLC 334 325.8 2.52% Assura PLC 54.55 60.7 -10.13% BBGI Global Infrastructure S.A 156.6 149.8 4.54% Bluefield Solar Income Fund Ltd 136 140 -2.86% Cordiant Digital In
Slide 31: Capital raises
CAPITAL RAISES Since inception on 25 January 2016, the Fund has invested £219.6m making savings of 248.1bps by regularly participating in Placing Programs and C Shares. 2016 2017 2018 2019 The Fund invested £12.25m The Fund invested £19.17m The Fund invested £13.99m The Fund invested £68.8m in 20 Pl
Slide 32: Key terms
KEY TERMS VT Gravis UK Infrastructure Income Fund Fund Size £837.84m (as at 31 December) Dividend Yield Net Yield C shares 4.74% As at 31 December 2022 Net Yield I shares 4.84% Inflation Protection Yes Share Classes Clean & Institutional / Income & Accumulation / GBP, USD & EURO Minimum Investment C
Slide 33: Investment and distribution
INVESTMENT AND DISTRIBUTION Investment Manager Investment Advisor Distribution Valu-Trac Investment Management Ltd. Gravis Advisory Ltd. Gravis Advisory Ltd. i. Valu-Trac Investment Management i. Gravis Advisory Ltd. is owned and i. The team of five has assisted in Limited was established as an mana
Slide 34: Platforms & wrappers
PLATFORMS & WRAPPERS Available on the following platforms: Suitable for: 7IM Nucleus Direct investors Aegon Old Mutual (Skandia) SIPPs AJ Bell Old Mutual Wealth ISAs Allfunds Parmenion Charities Alliance Trust Pershing Offshore bonds Amber Prudential* Companies Ascentric Raymond James QROPS Aviva SE
Slide 35: Contact information
CONTACT INFORMATION Investment Manager and Dealing Valu-Trac Investment Management Limited Valu-Trac Dealing UKinfrastructure@valu-trac.com UKinfrastructure@valu-trac.com 01343 880217 01343 880344 Investment Adviser Will Argent Fund Adviser 020 3405 8552 william.argent@graviscapital.com Distribution
Slide 36: Important notice
IMPORTANT NOTICE WARNING: The information in this Report is presented by Valu-Trac using The information provided is ‘as is’ without any express or implied warranty all reasonable skill, care and diligence and has been obtained from or is of any kind including warranties of merchantability, non-infr
Slide 37: Investment ideas for the long run
INVESTMENT IDEAS FOR THE LONG RUN UK INFRA
VT Gravis UK Infrastructure Income Fund — Investor Presentation (January 2023) on 6ix