GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — VT Gravis Clean Energy Income Fund — Investor Presentation (April 2023)
32 slides from GCP Asset Backed Income Fund's investor presentation, April 2023
Slide 1: VT Gravis Clean Energy Income Fund April 2023
GRAVIS CLEAN ENERGY VT GRAVIS GLEANENERGY INCOME FUND April: 2023
Slide 2: Contents
CONTENTS 3 Introduction to clean energy 10 Introduction to the fund 15 Fund characteristics 22 Appendix is
Slide 3: Introduction to clean energy
Introduction to clean energy GRAVIS CLEAN ENERGY
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’. Waves nom Solar Wind Energy Storage ooo ooo = O ¢ Energy Bioenergy Smart Grid Ge
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. (© Others (incl. marine) @ Bioenergy @ Geothermal @ Natural gas @ Wind (onshore and
Slide 6: Electrification of the economy will result in higher electricity usage
ELECTRIFICATION OF THE ECONOMY WILL RESULT IN HIGHER ELECTRICITY USAGE 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 beco
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 adde
Slide 9: Renewable energy increasingly cost competitive with fossil fuels
RENEWABLE ENERGY IS INCREASINGLY COST COMPETITIVE WITH FOSSIL FUELS Global weighted-average Levelised Cost of Electricity and PPA/auction prices, 2010-2023 on ee a 2020 (USD/kWh) 0.4 0.381 0.340 03 oe 0.162 0.089 ol 0.108 pier \ © 0.076.043 084 0.0 —@®- Auction database = —@— LCOE database Fossil fu
Slide 10: Introduction to the fund
Introduction to the fund GRAVIS CLEAN ENERGY
Slide 11: CLEAN ENERGY
- ‒ - ▪ ▪ ▪ - ▪ - ‒ ▪ - ▪ - - - - - - - - - - - CLEAN ENERGY
Slide 12: Investment philosophy
INVESTMENT PHILOSOPHY ACTIVE FUND MANAGEMENT CONSTRUCTION & COST Ensure diversification AWARENESS. listed ol the global Seeks opportunities sted clean energy to minimise the entry sector price RISK MANAGEMENT Focus on higher quality companies SS oo INVESTOR OUTCOMES Delivers dependable and secure qu
Slide 13: Contracted cash flows, greenfield assets, commercial exposure
Greenfield Assets, Contracted Cash Flows Commercial Exposure CLEAN ENERGY 13
Slide 14: Investment examples
INVESTMENT EXAMPLES Atlantice 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 >.sbluefield Market Cap — £804m IPO Date — July 2013 MM, GREENCOATS % Ww % UK WIN
Slide 15: Fund characteristics
Fund characteristics GRAVIS CLEAN ENERGY
Slide 16: Portfolio construction
PORTFOLIO CONSTRUCTION Top 10 holdings Asset type Greencoat UK Wind PLC 7.26% di = Closed End Investment Companies 46.1% Renewables Infrastructure Group Ltd 6.85% Yield Co Equity 41.0% . . Equities 10.1% Atlantica Sustainable Infrastructure PLC 259 . antica Sustainable Infrastructure 6.25% = Cash 2.
Slide 17: Portfolio cash flow resilience
PORTFOLIO CASH FLOW RESILIENCE Bias towards operational energy infrastructure assets underpinned by contracted pricing Operational Assets Revenue Characteristics Cash Energy Non- oy 28 Infrastructure Commercial Cash Revenues 2.8 1.2% AT Energy Infrastructure: Power Price Development & Exposure Const
Slide 18: 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 Encavis Renewables John Laing House ES Renewables eee UK Wind 185 nie Infrastructure Enviro
Slide 19: Fund performance
FUND PERFORMANCE C GBP Net Accumulation 18 December 2017 — 31 March 2023 420 S&P Clean Energy 380 —— MSCI World Infra —VT Gravis Clean Energy Income Fund 340 300 260 220 180 140 100 60 Dec 17 Jul 18 Feb 19 Sep 19 Apr 20 Nov 20 Jun 21 Jan 22 Aug 22 Mar 23 Performance 1month 3 months 12 months 3 years
Slide 20: Since launch risk & reward
SINCE LAUNCH RISK & REWARD Data as at 31 March 2023 c 3 220 Average volatility ® 200 (18.30%) 180 S&P Global Clean Energy 160 e 140 120 100 VT Gravis Clean 80 CAccGBP @ Average return (69.30%) 60 MSCI World 40 MSCI World Infrastructure, MSCIUK 20 io} io} 5 10 15 20 25 30 Volatility Return Since Laun
Slide 21: Dividends
DIVIDENDS Quarterly since inception to 31 March 2023 2017 2018 2019 2020 2021 2022 2023 GRAVIS CLEAN ENERGY INCOME ACCRUAL Portfolio companies either maintained or increased ordinary dividends throughout 2021 - Resilience reflects contracted nature of cash flows, bias towards operational assets, str
Slide 22: Appendix
Appendix GRAVIS CLEAN ENERGY
Slide 23: 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 24: 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. KL company rs) e GRAVIS — > (=) Investment Seno fal I + XX GRAVIS CLEAN ENERGY 24
Slide 25: SPV structure
• • • • FM, O&M Debt interest SPV & principal Equity
Slide 26: CLEAN ENERGY
• • • • • • • • • • • • • CLEAN ENERGY 26
Slide 27: Independent ratings
INDEPENDENT RATINGS ESG REVIEWED CO) ELITE RATED by FundCalibre.com GRAVIS CLEAN ENERGY 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 + An
Slide 28: Key terms
KEY TERMS VT Gravis Clean Energy Income Fund 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 £557.62m Yield C shares 4.54% (as
Slide 29: Contact information
CONTACT INFORMATION Investment Manager and Dealing Valu-Trac Investment Management Limited cleanenergy@valu-trac.com Valu-Trac Dealing cleanenergy@valu-trac.com 01343 880217 01343 880344 Investment Adviser Will Argent Fund Adviser 020 3405 8552 william.argent@graviscapital.com Distribution William M
Slide 30: 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 31: 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 co
Slide 32: Gravis: Investment ideas for the long run
Gravis INVESTMENT IDEAS FOR THE LONG RUN GRAVIS CLEAN ENERGY
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