Below is a transcript of the video, modified for your reading pleasure. Please check the corresponding audio before quoting in print, as it may contain small errors.

The Gravis Clean Energy Income Fund targets a 4.5% yield whilst preserving capital with the potential for capital growth. To achieve this, the Fund invests in the universe of securities listed in Organisation for Economic Cooperation and Development (OECD) nations, that focus on clean and renewable energy projects. This will include solar, wind, hydro, energy storage, energy efficiency, bioenergy, smart grid, and geothermal pumps. The types of securities held include closed-ended investment companies, yield-co-equities, equities, and fixed income (ie: green bonds). Although referred to as yield co-equities, these are companies, listed in North America and Canada, that own portfolios of contracted renewable power generation assets with long-dated cash flows.

The Gravis Clean Energy Income Fund invests in a universe comprised in securities listed in OECD nations that focus on clean and renewable energy projects. This results in a fund of a minimum of 22 holdings that provide exposure to a vast array of underlying clean energy assets. A minimum of 80% of the Fund is exposed to operational, either availability-based or contracted, renewable energy assets. A maximum of 20% of the Fund is exposed to thematic companies involved in clean energy and energy efficiency, e.g: supply supply chain, project funding, construction, and battery storage.

These holdings must also have a demonstrable record of generating operating profits. The focus for investment is mature technologies with established track records that have attractive long-term dependable cash flows. Positions must be income generative with the potential for capital growth to be included.

The investment process for the Fund can be separated into two parts: one, qualitative, and the other quantitative, and the manager uses a combination of the two when assessing an investment opportunity. The qualitative part of the process is as important as the quantitative. Due to the underlying themes the Fund invests in, many controversial sectors are naturally admitted. However, the Fund is managed to adhere to a Responsible Investment Statement that clarifies this position. The Responsible Investment Statement covers the areas of impact, ESG considerations, avoidance, and independent analysis with an independent company used to assess the Fund to ensure that it is run in accordance with the Responsible Investment Statement.

The Gravis Clean Energy Income Fund is a global fund that invests in developed markets and provides investors with exposure to a growing sector supported by long-dated, reliable cash flows that in some cases provide inflation protection. Holdings are multi-currency, which can be hedged using derivatives at the discretion of the investment manager to mitigate FX-driven volatility.

However, the underlying portfolio valuation can be sensitive to movements in long-dated bond yields as exhibited during 2023 and 2024, although operationally, the underlying companies were still delivering. The greatest risk of the underlying exposure is political risk, especially if a government reneges on subsidies, tax incentives, or changes to policy retroactively. To mitigate this risk, the Fund only invests in OECD countries with instruments listed in North America, the UK, continental Europe, and Australasia. Granted, the 2024 US election result is providing an element of political uncertainty for the sector. However, at this stage, any potential policy changes have greater capacity to impact the scope and eligibility of future renewable projects as opposed to established projects in which the Fund invests.

Also, with the rising energy demand in infrastructure such as data centres, an energy mix will be required to meet this accelerating demand, as opposed to solely relying on fossil fuels.

To conclude, the Fund offers investors exposure to a growing sector whilst providing a diversified source of income. This is pertinent as clean technology remains at the forefront of a number of nations and corporate agendas, especially as we move towards a net zero world and a reduction of overall CO₂ emissions.

In addition, the Responsible Investment Statement provides clarity to investors in terms of what the Fund will invest in, and there is fair-party oversight to ensure that it's adhered to.