The push towards renewables is a multi-decade structural growth trend that is creating opportunities for investors. Investment in this area continues to grow, largely driven by demand and income which is generated by renewable energy assets and government subsidies. Long dated power agreements is an area that is growing in the UK, but far more established in the US. Our clients with existing capability are ramping up investment teams combined with specialist distribution efforts. Whilst others are seemly behind the curve in building an alternative private assets capability. One thing is for sure, the private market sector continues to drive many firms long term growth plans overlapping that with global ESG strategies. Renewable energy is front and centre.
Gravis Clean Energy Income counts Renewables Infrastructure (6.1%), Clearway Energy (5.9%) and Greencoat UK (5.6%) as its biggest holdings. It holds around half of the portfolio outside the UK. Wind (34.9%) and solar (32.2%) dominate the portfolio and Argent does not expect that to change.