Clean energy income fund launched by Gravis

The VT Gravis Clean Energy Income Fund will invest in 31 operations linked to clean energy generation.

The investment firm Gravis Advisory is to launch the VT Gravis Clean Energy Income Fund next month.

The fund, which launches on 1 December, will have “a diversified portfolio” that will have exposure to mature operational wind, hydro and solar projects that generate long-dated stable cashflows, according to Gravis.

Designed to deliver “an attractive and regular income stream with a yield of 4.5 per cent per annum from launch, paid quarterly and net of charges”, the fund will own satellite positions in the equity and potentially debt of companies whose primary operational activities are directly linked to the clean energy theme.

Core holdings will initially be in yield companies (54.9 per cent), closed-ended investment companies (29.4 per cent) and equities (15.7 per cent).

The exposure is 32.4 per cent to the US, 30.4 per cent to the UK, 10.75 per cent in Canada and 26.45 per cent in Europe and the rest of the world.

Fund adviser William Argent said: “Clean energy has evolved to become a huge, reliable and dependable industry since the turn of the decade and now forms an important component of the global energy generation mix today.”

The fund has a minimum investment of £100 and the annual management charges of 0.8 per cent will be capped and taken from income.