VT Gravis Clean Energy Income fund

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Renewable and Greener Energy

Approx 87% of the portfolio is invested in companies owning operational renewable energy assets (as at Feb'20)

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Strong sustainability credentials

Awarded a 4 star rating by 3D Investing (high social impact and limited ethical concerns)

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Far reaching exposure

The fund’s 30 holdings provide exposure to 900 separate renewable energy assets

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Strong performance

The fund has outperformed the majority of its global peers since it was launched

The Fund

VT Gravis Clean Energy Income was launched in 2017, and is run by William Argent who has been investing in the listed infrastructure sector since 2006. The team at Gravis have invested over £1bn in renewable energy projects, and have built up considerable expertise analysing investments in the sector and managing assets.

The fund invests in global companies within the clean energy theme, with the core belief that electricity from clean sources is a significant contributor to the world's growing need for increased power.

The sustainable energy association defines clean energy as ‘energy derived from renewable, zero-emissions resources (“renewables”), as well as energy saved through energy efficiency measures’.

Clean energy

Global energy demand grew by 2.9% in 2018, the fastest pace in around a decade, and was driven by a robust global economy and stronger heating and cooling needs in some regions. Renewables grew by 14.5%, although this still accounted for only around a third of the increase in total power generation.

Currently there are huge inefficiencies in delivering power to users, with approximately 56% of power generated being wasted globally. Coal and oil still account for over 60% of total global energy supply; both of which are finite resources. Therefore there’s a large and growing market for companies involved in making energy generation and supply cleaner and more efficient.

As a result, the energy sector is experiencing its most dramatic transformation since its creation more than 100 years ago. Policy support and technology cost reductions are leading to rapid growth in variable renewable generation capacity. The consumption of renewables has increased significantly in recent years, partly due to advances in energy storage solutions.

The fund seeks to capitalise on this growing theme by investing in operational and cash generative renewable energy assets such as Wind, Solar, Hydro-electric and Biomass plants. The resulting portfolio has around 30 holdings, providing exposure to around 900 separate functioning renewable energy assets.

Example holdings

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Holding
What they do
TRIG The Renewables Infrastructure Group invest in a diversified portfolio of renewable energy infrastructure assets in the UK and Europe. The portfolio comprises over 70 assets including wind farms, solar projects and a battery storage asset with a total aggregate generating capacity of over 1.6GW. 
Pattern Energy Group A leading US-based independent renewable energy company operating utility-scale wind and solar facilities on a global basis.
Vestas The energy industry’s global partner on sustainable energy solutions – designing, manufacturing, installing and servicing wind turbines globally.