GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — VT Gravis Clean Energy Income Fund — Investor Presentation (May 2023)
34 slides from GCP Asset Backed Income Fund's investor presentation, May 2023
Slide 1: VT Gravis Clean Energy Income Fund
GRAVIS CLEAN ENERGY VT GRAVIS CLEAN ENERGY INCOME FUND Gravigeoe
Slide 2: Contents
CONTENTS 3 Introduction to Clean Energy 10 Introduction to the Fund 15 Fund Characteristics 23 Appendix GRAVIS CLEAN ENERGY
Slide 3: Introduction to Clean Energy
INTRODUCTION TO CLEAN ENERGY Gravis
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 Energy Storage ooo ooo = O ‘ Energy Bioenergy Smart Grid Geothermal H
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. TWh/yr Gw ‘Source: IRENA Global Renewables Outlook: Energy Transformation 2050 GRAV
Slide 6: Electrification of the Economy Will Result in Higher Electricity Use
ELECTRIFICATION OF THE ECONOMY WILL RESULT IN HIGHER ELECTRICITY USE Illustrative UK final energy use in 2050 Overall electricity use declines owing to energy efficiency initiatives but the electrification of transport and heating results in an approximate doubling of electricity usage, which become
Slide 7: 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 8: Corporate Sustainability Ambitions
CORPORATE SUSTAINABILITY AMBITIONS Additionality Corporate sustainability ambitions increasingly focused on emissions, driving investment in sourcing and generating renewable energy. Corporates are making investment decisions that directly result in new renewable energy generation capacity being add
Slide 9: Renewable Energy Is Increasingly Cost Competitive with Fossil Fuels
RENEWABLE ENERGY IS INCREASINGLY COST COMPETITIVE WITH FOSSIL FUELS Global weighted-average Levelised cost of = and PPA/auction prices, 2010-2023 ripped 0.381 0.340 03 o 0.162 0.089 01 0.108 SE SS 9.057 ~ 0076 0,043 0.084 0.084 : 0. 0.039 RERREERSSRSERERERRSESRRERRSRER RR ESS —®-— Auction database —
Slide 10: Introduction to the Fund
INTRODUCTION TO THE FUND Gravis
Slide 11: Fund Guidelines and Characteristics
FUND GUIDELINES AND CHARACTERISTICS Key Information Key Information + The VT Gravis Clean Energy Income Fund is a UK UCITS V OEIC + Managed in adherence to a Responsible Investment Statement: + The Fund invests in a diversified portfolio of global listed — Impact securities including Yield Co Equity
Slide 12: Investment Philosophy
INVESTMENT PHILOSOPHY ACTIVE FUND MANAGEMENT CONSTRUCTION & COST Ensure diversification AWARENESS: across the global listed lean energy sector Seeks opportunities to minimise the entry price RISK MANAGEMENT Foous on higher quality companies ee > INVESTOR OUTCOMES Delivers dependable and secure quart
Slide 13: Risk Profile of Target Clean Energy Sectors
RISK PROFILE OF TARGET CLEAN ENERGY SECTORS Operational Assets Mid-length fixed PPAs Element of merchant power price exposure Long-dated fixed PPAs Subsidised cash flows Increasing Volatility Construction risk Installed Wind, Decreasing cashflow predictability Solar, Hydro, Biomass GRAVIS CLEAN ENER
Slide 14: Investment Examples
INVESTMENT EXAMPLES Atlantica Sustainable Infrastructure Market Cap - £2.8bn IPO Date — June 2014 ENCAVIS Market Cap - £2.6bn IPO Date - July 1998 NEXTENERGY Market Cap - £636m IPO Date — April 2014 GRAVIS CLEAN ENERGY =< bluefield Market Cap - £804m IPO Date — July 2013 A, GREENCOATS “je UK WIND 40
Slide 15: Fund Characteristics
FUND CHARACTERISTICS Gravis
Slide 16: Portfolio Construction
PORTFOLIO CONSTRUCTION Portfolio as at 30 April 2023 Asset Type ™ Closed End Investment Companies 46.8% Company Holding ay; . Greencoat UK Wind PLC 7.35% Yield Co Equity 39.9% Renewables Infrastructure Group Ltd 7.00% = Equities 10.0% Atlantica Sustainable Infrastructure PLC 5.72% Cash 3.3% Nextera
Slide 17: Portfolio Construction
PORTFOLIO CONSTRUCTION Underlying project exposure mWind 42.1% = Solar 29.5% ™ Climate Solutions 6.1% Hydroelectric 7.5% Energy Storage 6.3% Natural Gas 3.8% ™ Geothermal, Biomass, AD 1.2% ™ Natural Gas with CCUS 0.2% ™ Cash 3.3% Data as at 30 April 2023. GRAVIS CLEAN ENERGY Currency exposure (by li
Slide 18: Portfolio Cash Flow Resilience
PORTFOLIO CASH FLOW RESILIENCE Bias towards operational energy infrastructure assets underpinned by contracted pricing Operational Assets Cash Energy Non- Infrastructure fi 2.8% 1.2% Energy Infrastructure; Development & Construction 12.6% Energy Infrastructure : Operational 83.4% Location of Energy
Slide 19: Depth of Projects Within the Fund
DEPTH OF PROJECTS WITHIN THE FUND - SAMPLE The Fund invests in multiple closed ended funds; which own or invest in a diversified pool of SPVs Grater Transat Seen Eo Tones era fiw 3 eS Buutele Solr Ukwed "8 Inergen78 wiesructre Enrormerta 17 Projects. 44 projects Bro 38 projects projects. er Group 77
Slide 20: Fund Performance
FUND PERFORMANCE C GBP Net Accumulation 18 December 2017 — 30 April 2023 420 —— S&P Clean Energy ——MSCI World Infra 380 —\VT Gravis Clean Energy 340 Income Fund 300 260 220 180 140 100 60 Dec 17 Aug 18 Apri Dec 19 ‘Aug 20 Apr 21 Dec 21 ‘Aug 22 Apr 23 Returns 1Month 3 Month 12 Month 3 Years YTD Since
Slide 21: Since Launch Risk & Reward
SINCE LAUNCH RISK & REWARD Data as at 30 April 2023 £ 220 Average volatility @ 200 (17.92%) we 180 160 S&P Global +40 Clean Energy 120 “00 VT Gravis Clean C avis Clean 60 Acc GBP @ Average return (66.32%) 60 MSCI World @| 40 MSCI World 20 Infrastructure ® MISCI UK ie} ) 5 10 15 20 25 _ 30 Volatility
Slide 22: Dividends
DIVIDENDS Quarterly since inception to 31 March 2023 2017 0:3220p 2018 2019 2020 2021 2022 2023 1.4267 3.9646p 4.4612p 4.6487 5.4997p 6.5483p INCOME ACCRUAL Portfolio companies either maintained or increased ordinary dividends throughout 2021 - Resilience reflects contracted nature of cash flows, bi
Slide 23: Appendix
APPENDIX Gravis
Slide 24: Fund Investment Team
FUND INVESTMENT TEAM William Argent, CFA - Fund Adviser & Director Willis 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 25: Key Investible Areas in Clean Energy Sector — SPV Focused
KEY INVESTIBLE AREAS IN CLEAN ENERGY SECTOR — SPV FOCUSED Operational & Cash generative Renewable Energy assets such as Wind, Solar, Hydro & Biomass plants. xt 222 ty ® ) GRAVIS CLEAN ENERGY Investment company £ GRAVIS CLEAN — Bawa 25
Slide 26: Project Finance Model in Operation
PROJECT FINANCE MODEL IN OPERATION Equity GRAVIS CLEAN ENERGY Finance Debt Regular and long dated payments from: Special purpose vehicle established Capitalin SS * Contracted payments * Sale of energy output * Public sector support + Subsidies/Tax incentives with the specific purpose of segregating
Slide 27: Gravis Responsible Investment
GRAVIS RESPONSIBLE INVESTMENT Gravis’ Commitments Gravis Responsibe Investment Policy GRAVIS CLEAN ENERGY 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 28: Independent Ratings
INDEPENDENT RATINGS Defaqto— ESG Reviewed defaqto . . a RD Defaqto ESG reviews for funds cover, among other things: Cc - 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
Slide 29: Key Terms
KEY TERMS Fund Size Dividend Yield Share Classes Minimum Investment AMC OCF* Synthetic OCF** Issue Price Valuation and trading Investment Association Sector Holdings Number of holdings Distributions Classification £ISINs & SEDOLs £553.36m Yield C shares 4.59% (as at 30 April 2023) Clean & Institutio
Slide 30: Platforms & Wrappers
PLATFORMS & WRAPPERS Available on the following platforms 7IM Aegon AJ Bell Allfunds Alliance Trust Savings Ascentric Aviva Barclays Co Funds Fidelity Funds Network FNZ Hargreaves Lansdown Hubwise James Hay Novia Nucleus GRAVIS CLEAN ENERGY Old Mutual/Quilter Pershing Prudential Raymond James SEI St
Slide 31: Contact Information
CONTACT INFORMATION Investment Manager and Dealing == Valu-Trac Investment Management Limited Valu-Trac Dealing = 01343 880217 01343 880344 cleanenergy@valu-trac.com cleanenergy@valu-trac.com Investment Adviser Will Argent Fund Adviser 020 3405 8552 william.argent@graviscapital.com Distribution Will
Slide 32: 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 33: 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 34: Gravis
Gravis INVESTMENT IDEAS FOR THE LONG RUN
VT Gravis Clean Energy Income Fund — Investor Presentation (May 2023) on 6ix