Best In Class  

Best in Class: VT Gravis UK Infrastructure Income

The fund will have a minimum of 22 holdings.

While this may sound very concentrated, it actually has exposure to around 1,000 separate underlying projects.

Turnover is generally no greater than 20 per cent a year and investments are generally underpinned by obligations of UK central and local government, as well as having long term predictable, contracted income.

The fund currently has its largest exposure to solar and wind projects (19.9 per cent and 15.5 per cent respectively), followed by health (12.8 per cent) and housing and accommodation (12.7 per cent).

Top holdings include GCP Infrastructure Investments (also run by Gravis), John Laing Environmental Assets Group, Primary Health Properties and NextEnergy Solar Fund.

The fund has returned 41.9 per cent since inception and has a current yield of 4.5 per cent with income distributed on a quarterly basis.

This fund has a lot going for it given both the environment and the ongoing need for both innovation and renovation in the UK infrastructure market.

It is a solid option for most investors looking for alternative sources of both income and growth, while also retaining an eye on capital preservation.

Darius McDermott is managing director of FundCalibre