Gravis

We’re excited to share that our Head of Private Credit, Albane Poulin, will be presenting at Investment Week's Private Markets Market Focus event in London next month. Albane will dive into the topic, 'Private Credit: Investing in real assets,' exploring how private credit plays a pivotal role in supporting essential infrastructure and real estate. Stay tuned for insights on how Gravis continues to identify long-term, resilient opportunities in private credit and real asset investments. #PrivateCredit #RealAssets #InvestmentWeek #InfrastructureInvesting

With inflation declining, policy rates look to have peaked and bond yields are decidedly lower than a year ago. Against this backdrop where can investors find a potentially attractive yield, ideally coupled with a decent element of growth, and underpinned by high quality assets? UK inflation recently fell more than expected to a three-year low of 1.7%. This takes it back below the Bank of England’s 2% target for the first time since April 2021. In response, the futures market now implies that the Bank will cut rates to around 3.5% by the end of 2025. Assuming the upcoming UK budget doesn’t trigger a funding panic then it is unlikely that the 5-year gilt will retest the elevated yields witnessed last year. With normalisation of the interest rate environment investors may turn their attention to seeking alternative sources of income. One possible source are REITs. Especially a portfolio of REITs benefitting from powerful socio-economic forces such as ageing population, digitalisation, generation rent and climate change. Mega trends like investing in healthcare infrastructure, increasing e-commerce penetration, the professionalisation of renting and the move towards net zero are driving rental growth. The trailing dividend yield on a portfolio of such securities is a little under 5%. And, according to consensus analyst estimates, those dividends could grow by about 5% in 2025*. Nicely in excess of forecast inflation. Then there is the potential valuation underpin. According to EPRA (European Public Real Estate Association) UK REITs entered October at a -14% discount to their net asset value. The consensus of analyst price targets for mega trend REITs points to similar upside potential*. What’s odd about this discount is that it exists at a time when the commercial property valuers are signalling an important inflection point – an inward shift in yields. This is potentially an important pivot point for investors. Savills recently wrote that “in terms of pricing, for the second month in a row we have witnessed our average prime yield move in”**. This favourable combination of growing rents and declining valuation yields should be good news for the value of next generation properties. And while REIT investors wait for this potential revaluation to happen they are likely to collect a decent and growing dividend yield. VT Gravis UK Listed Property fund film: https://lnkd.in/dAbbG389 * As calculated by Bloomberg ** Savills Market in Minutes: UK Commercial, September 2024 Disclaimer: Capital at risk. Past performance is not an indication of future performance. This post is for information purposes only and does not constitute any form of investment advice and should not be considered as a recommendation, invitation, or inducement to subscribe for, dispose of or purchase any such securities. For UK readership only, not intended for distribution outside of the UK. #Gravis #REITs #EPRA #MegaTrends #WealthManagement #NextGeneration

📍 Today, some of the Gravis team are at the Citywire Wealth Manager Retreat, where Philip Kent, lead adviser to GCP Infrastructure Investments Ltd, is presenting on "Future-proofing infrastructure: how new policies can support investment strategies." 🛠️ Phil will be exploring how new support mechanisms could align with GCP’s strategic goals and reviewing key changes in the infrastructure landscape over the past year. He will also be highlighting exciting opportunities emerging from Labour’s policies, positioning sustainable infrastructure for a promising future. 💡 We look forward to seeing all attendees in our sessions! Craig Jenkins | Cameron Gardner | #Infrastructure (Professional investors only. Capital at risk. Past performance is not a guide to future performance).

🎙️In the latest episode of IFA Magazine's podcast 'IFA Talk", Matthew Norris, manager of the VT Gravis UK Listed Property strategy, dives into the exciting shifts happening in the world of UK REITs. Matt shares his insights on: ➡️ The tailwind effect of falling interest rates and why this could be a turning point for REITs. ➡️ Why certain real estate sectors, especially those tied to mega trends like digitalisation and generation rent, are poised for growth. ➡️ The M&A activity in the space—how private equity is eyeing opportunities in high-quality, next-gen real estate. ➡️ Why diversification and stock picking matter more than ever in this evolving market landscape. ➡️ The benefits of investing in actively managed funds versus passive index trackers. 🎧 Tune in to the podcast to learn more here: https://lnkd.in/e4MTJcXU #UKREITs #RealEstate #PropertyInvestment (Professional investors only. Capital at risk. Past performance is not a guide to future performance.)

Last week, our team attended Investment Week's Fund Selector Focus in the Channel Islands, where Matthew Norris, fund manager of the Robeco Gravis Digital Infrastructure Income strategy, presented on 'Concrete and cables: The foundations of our digital future'. From data centres and telecom towers to fibre optic networks and logistics supporting e-commerce, these physical assets are the backbone of our digital world. As the transition from analogue to digital continues, the companies owning these essential infrastructure assets present exciting opportunities for long-term growth income. You can learn more about the strategy here: https://lnkd.in/eVSgUD8z Matthew Norris, CFA | Jacob Kett | Cameron Gardner | #DigitalInfrastructure (Professional investors only. Capital at risk. Past performance is not a guide to future performance.)

🍷 Wine, Wisdom, and Winning Insights! 🍷 Last night, we had the pleasure of hosting a delightful evening of wine and canapés with some of the sharpest minds in journalism. 🍇🧀 Between the swirl, sip, and savour, we dived into what makes Gravis tick —sharing insights into our strategies and how we're shaping the future of infrastructure and real estate investments. A perfect blend of great conversation, fabulous wine, and food for thought! Cheers to building connections and making infrastructure and real estate investment a little more fun. 🥂 Thank you to all the journalists and home team that came and we hope you had a lovely time! Ylenia Saitta | Damian Fantato | Suzie Lynes | James Bremner | Tom Burroughes | Melanie Tringham | Cherry Reynard | Rosie Murray-West | Tanya Jefferies | Elliot Gulliver-Needham | Matt Browning | Michael N. | Andrew Michael | Tom Aylott | Beth Brearley | Kat Hidalgo | Philip Kent | Ed Simpson | Albane Poulin | Iryna Hanbury | Ben Rider | Craig Jenkins | Sam Slator | Daniela Santos

Yesterday at the RBC Capital Markets Generalist Investor Day, William MacLeod, Managing Director - Commercial at Gravis, spoke on the proposed regulatory changes regarding cost disclosure. Last night, HM Treasury released a draft Statutory Instrument that goes further than anyone anticipated. Key takeaways: 📈Investment trusts will no longer need to produce a Key Information Document (KID) or publish ongoing costs, removing unnecessary and misleading disclosures. 👥 Distributors (wealth managers, DFMs, platforms) won't need to publish ongoing costs for investment trusts either. 💼 Open-ended funds won't need to aggregate investment company costs anymore - because they simply won't exist. This marks a new era of transparency and accuracy for investors, allowing them to make decisions based on clear, reliable information. With Parliament back from recess and a light legislative agenda, we're expecting swift progress. This regulatory evolution could be in place sooner than we think. #CostDisclosure

Last night the Government published draft legislation for a new Statutory Instrument to be called: The Packaged Retail and Insurance-based Investment Products (Retail Disclosure) (Amendment) Regulations 2024. One sentence in this draft Bill stands out: ‘…This means that investment trusts, and persons advising on or selling shares of investment trusts, will no longer be required to provide a standardised Key Information Document to retail investors, and will not have to provide a single aggregate figure of costs to clients…’ The Bill sets out to resolve the issues created by inaccurate cost disclosure which has blighted the appetite amongst investors in Investment Trusts, Investment Companies and REITs for years. It will exclude them from PRIIPs and MiFID Ord Regulations and in so doing will remove the requirement for these companies to publish Key Information Documents (KIDs), nor will they be required to publish misleading costs.   This is draft legislation at present and will need to navigate both the Commons and the Lords. However, there does appear to be a sense of urgency, having been published on parliamentarians first day back from recess and following on from the FCA’s announcements on 19th and 30th September this looks like the Government is keen to bring this situation to a rapid conclusion.   The publication of the draft Statutory Instrument is most welcome. It directly addresses and resolves the points that so many have been working to explain for the last few years. We will watch closely as it progresses through parliament. There are so many people to thank, a far from complete list includes: Tulip Siddiq MP, Lord Livermore, Tom D., Brandon Thompson, John Baron, Sharon Bowles, Ros Altmann, Ben Conway, David Appleton, Tom Harris, Christian Pittard, Minesh Shah, Richard Parfect, James de Bunsen, CFA, Katya Gorbatiouk, Alan Brierley, Tom Poynton, Neil Blankstone, Richard Stone, Guy Rainbird, Annabel Brodie-Smith, The Association of Investment Companies (AIC). And of course providing expert knowledge throughout: NIGEL FARR, Zoe Wilson and Tim West of HSF.

🌍🌊 Unlocking the future of energy this #WorldHydrogenDay 🌍🌊 📷In celebration of #WorldHydrogenDay today, we sat down with Bianca McMillan and Ben Rider, Associate Directors here at Gravis, for a deep dive into the hydrogen sector. 💡Bianca walked us through the fascinating "rainbow of hydrogen" - from black/brown, grey, blue to the highly sought-after green hydrogen. 🔎Ben explained the fundamentals of what exactly hydrogen is and why it is such a key player in the future of clean energy. ✔Both identified Gravis's involvement in this sector and the investment opportunities available. 📽See below for a behind-the-scenes from this insightful video recording session as we explore the role hydrogen will play in shaping a cleaner and more sustainable future. #Hydrogen #CleanEnergy (Professional investors only. Capital at risk. Past performance is not a guide to future performance.)

As we gear up for #WorldHydrogenDay tomorrow, we managed to sit down with Bianca McMillan and Ben Rider, Associate Directors at Gravis, today to discuss all things hydrogen. Have you ever thought what exactly is hydrogen and why it's so crucial for a cleaner energy future? Well stay tuned for a sneak peak tomorrow as we celebrate #WorldHydrogenDay here at Gravis. We will be sharing more insights from this fascinating session where we explore the rainbow of hydrogen and the role green hydrogen plays in the path to net zero. #RenewableEnergy #Hydrogen