In this latest special as part of Octo’s ‘Why now for Investment Trusts?’ programme, Nick Britton ACSI, the Research Director at the Association of Investment Companies, introduced Phil Kent, the Chief Executive of Gravis and investment advisor to GCP Infrastructure Investments, a London-listed investment trust focused on infrastructure.
This great conversation looks at ‘Why now for Investment Trusts?’ from Gravis’ perspective. The rewards and challenges of working in this sector, the benefits of the Investment Trust structure, particularly its ability to match the liquidity demands of illiquid infrastructure assets while providing daily liquidity for shareholders, the importance of disclosure and transparency in public market structures, and the role of independent boards in looking after shareholders’ interests.
Digging deeper they also discuss the current investment landscape, focusing on the UK government’s efforts to support new asset classes and the potential for infrastructure investments across various sectors. Highlighting the importance of decarbonizing the electricity grid, heat, transport, and industrial sectors, and the role of infrastructure in addressing social challenges and supporting the digital economy. Phil also commented on the new government’s policies, including changes in planning legislation and the increase to the Contract for Difference round, while expressing cautious optimism about the National Wealth Fund and its potential impact on private sector capital. He emphasized that infrastructure investments offer a defensive and long-term income, making them an attractive option for investors.
Phil, the CEO of Gravis and manager of the GCP Infrastructure Investments trust for about 8 years, highlights the three objectives: delivering income, diversification, and capital preservation. He emphasises having the ability to adjust its investments based on the evolving infrastructure sector and its focus on debt for payment stability. He includes thoughts on the importance of sustainability and ESG objectives. and the potential of infrastructure investments across various sectors.
Register with Octo Members to see the full interview here.