Philip Kent, CEO of Gravis Capital and Lead Manager of GCP Infrastructure Investments (LSE: GCP), joins UK Investor Magazine to discuss the state of the infrastructure investment trust sector and how GCP is designed to achieve capital preservation and reliable, inflation-linked income from UK infrastructure projects.
Infrastructure trusts have spent much of the past few years trading at wide discounts to NAV. Philip explains why, how Gravis-managed portfolios react to interest rate moves, and how the team balances income against capital protection in a weak economy.
The conversation also covers the outlook for infrastructure dividends over the next five years, opportunities in net zero and the energy transition, and where capital is flowing across the UK today. Philip addresses the health of GCP’s debt book directly, including whether any project borrowers are falling behind on interest payments.
From the perspective of investors who may use an ISA or SIPP, Philip outlines the portfolio mix, the advantages listed vehicles offer over private funds, and the most common misconceptions about infrastructure investing. He closes with how Gravis is approaching AI and what role infrastructure should play alongside equities and bonds in a diversified portfolio.
Topics covered:
- Why infrastructure trusts trade at discounts to NAV
- Interest rate sensitivity
- Income vs capital protection
- Dividend sustainability over five years
- Net zero and energy transition opportunities
- Where UK infrastructure capital is going
- Debt quality and borrower performance
- GCP’s portfolio mix for ISA and SIPP holders
- Listed vs private infrastructure funds
- Gravis Capital’s approach to AI
- Retail misconceptions about infrastructure
- Infrastructure in a diversified portfolio
