In focus
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Despite this fund’s focus on renewable energy, its manager
Will Argent insists it does not have a specific ESG strategy
FE TRUSTNET
strategies here, rather we’re looking
for capital preservation.”
Yet despite the manager’s modesty,
VT Gravis Clean Energy Income has
got off to a flying start, making 27.76
per cent since launch in December
2017 against 12.87 per cent for the
IA Global sector average. It has an
ongoing charges figure (OCF) of 0.8
per cent and is yielding 3.73 per cent.
FACT BOX
MANAGER: Will Argent / LAUNCHED: 18/12/2017 / FUND SIZE: £25.3m / OCF: 0.8%
FE CROWN RATING
N/A
PERFORMANCE OF FUND VS SECTOR SINCE LAUNCH
IA Global (12.87%)
VT Gravis Clean Energy Income (27.76%)
30%
25%
20%
15%
10%
5%
0%
-5%
ay
-10%
“If a company has a portfolio of 10
per cent wind farms and 90 per cent
natural gas, we won’t invest in it,” the
manager said. “But switch that around
to 90 per cent clean energy and 10 per
cent natural gas, and it would qualify.”
He added: “Natural gas is far cleaner
than coal and safer than nuclear, and
is a transition fuel that is likely to be
with us for a long time to come.
“Solar and wind are intermittent
power generators that often need
to be complemented and gas allows
them to maintain the base load of
power needed.”
Argent uses a quantitative and
qualitative approach to selecting
investments. The quantitative side
involves looking at a company’s net
asset value [NAV], which the manager
said allows him to appraise its value
and compare it with competitors.
Top holdings include US firm
Pattern Energy Group, which owns
R
etirees who want some
diversification in their
income stream while tying
it to a theme that looks set to grow
exponentially over the coming years
may wish to consider VT Gravis Clean
Energy Income.
The fund is a diversified portfolio
of global companies involved in the
operation, funding, construction,
generation and supply of clean energy.
Manager Will Argent insists it is not
specifically an ESG-focused strategy,
even though his process means a large
proportion of shareholders have an
ESG mindset and find it helps them
meet their goals.
“We’re screening out energy
companies that are exposed to fossil
fuels, coal and nuclear,” explained
Argent, although he admitted there
are some exceptions – for example,
companies that produce some
natural gas.
a number of onshore wind assets;
Canada’s TransAlta Renewables,
which owns more than 70 facilities
in Canada, the US and Australia; and
UK investment company John Laing
Environmental Assets.
Argent said Gravis runs investment
strategies that are “slow and steady,
alongside low volatility”, adding:
“We don’t really run high-growth
VT Gravis Clean
Energy Income
Source: FE Analytics
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