Case study: GCP Infrastructure Investments (GCP)

Launched: 2010

Manager: Gravis Capital Management Ltd

Ongoing charges: 1.2%

Investment policy: GCP Infrastructure Investments (GCP) seeks to provide shareholders with regular and sustained long-term dividend income whilst preserving the capital value of its investments through investing in a diversified portfolio of UK infrastructure projects with long-term, public-sector-backed revenues, with a focus on debt.

GCP Infrastructure Investments (GCP) was launched in 2010 to provide investors with reliable government-backed income, secured against essential UK infrastructure.

Unlike equity-focused funds, GCP lends to a diversified portfolio of infrastructure projects benefiting from long-term, government-backed cash flows, often with an element of inflation-linkage. These revenues tend to be resilient through economic cycles, offering investors both stability and diversification with a lower correlation to bond and equity markets.

The UK infrastructure landscape has undergone a significant transformation over the past 15 years. GCP’s diversified approach and early-mover strategy have enabled it to evolve with market dynamics, capturing enhanced returns and mitigating sector-specific risks. For example, within the renewables sector, the trust was able to lock in 9-10% yields from early investments in solar energy (in 2011), and anaerobic digestion (2013), significantly above the prevailing 0.5% base rate and the low single-digit yields offered to later lenders.

As solar and wind infrastructure markets have matured and risk-adjusted returns have fallen, GCP has reoriented its portfolio to take advantage of new opportunities, such as anaerobic digestion. This approach has helped GCP construct a portfolio that now generates enough clean energy to power almost a million homes each year.

Against a favourable policy backdrop, including the UK’s new £725 billion ten-year infrastructure strategy, GCP is well-positioned to benefit from rising public and private investment. With structural drivers such as decarbonisation, deglobalisation, ageing demographics and digital connectivity accelerating, the trust offers investors access to long-term trends through a defensive, income-oriented lens.

1) What is the investment trust’s goal?

To provide consistent, long-term dividend income and preserve capital through investing in a diversified portfolio of UK infrastructure assets that benefit from public-sector-backed cash flows, with a focus on debt.

2) Are investment decisions driven by a particular investment style?

GCP focuses on providing exposure to a diversified range of infrastructure assets in the UK which are underpinned by public-sector-backed cash flows, focusing on debt. These assets range from renewables, with revenues predominantly underpinned by government subsidies, PFI/PPP with unitary charge payments backed by the UK government, and public-sector-backed lease income from the supported living assets within the portfolio. Around half of the current portfolio is inflation-protected.

The team focuses on assets with high barriers to entry, monopolistic characteristics and low sensitivity to economic cycles. Rather than chasing capital growth, the trust prioritises risk-adjusted returns and capital preservation, seeking assets that deliver reliable income irrespective of the macro environment, with the diversified nature of the portfolio supporting this ambition.

GCP also favours projects with high upfront capital expenditure and limited ongoing operating risk, supporting dependable long-term returns, with just 1% of the portfolio exposed to construction.

3) How many assets does the trust typically hold?

GCP holds a well-diversified portfolio of almost 50 investments spanning 17 infrastructure sectors. Around 60% of the portfolio is invested in renewables (primarily solar, biomass, wind and anaerobic digestion), just over a quarter in PFI projects (with healthcare and education as the largest constituents), with supported living making up the remainder.

In terms of capital structure, the majority of the portfolio is invested in senior and subordinated debt, which offers greater security than equity exposure.

4) What is the trust’s dividend policy?

GCP has delivered consistent dividends for the last 15 years and is currently trading at a dividend yield of just over 9% (as at 08/08/2025). It set a medium-term 7.0 pence per share dividend target in 2020 and continues to deliver on this.

5) What are the trust’s ongoing charges?

GCP has an ongoing charge of 1.2% per annum (which is deducted from the net asset value and not from the shareholder).

6) Does the investment trust have performance fees?

No.

7) Does the investment trust use gearing and, if so, is it structural or opportunity-led?

GCP has a maximum allowable structural gearing of 20%, although this has typically been in the 10-15% range in recent years. It reported a net debt position of £36 million as of 30 June 2025, equivalent to 4.2% of NAV.

KEPLER

GCP Infra is pleased to announce a dividend of 1.75 pence per ordinary share for the period from 1 July 2025 to 30 September 2025. This is in line with the Company’s annual dividend target of 7.00 pence per ordinary share. The dividend will be paid on 9 December 2025 to holders of ordinary shares recorded on the register as at the close of business on 14 November 2025.

Expected timetable:

Shares quoted ex-dividend	13 November 2025
Record date for dividend	14 November 2025
Dividend payment date	9 December 2025

If you buy just before an xd date, you could receive 5 dividends in just over a year. With GCP that could equate to a yield of 12%. That would create a problem for next year but a lot of water to flow under a lot of bridges before then.

ADIG leaves the watch list after the announcement of the cash being returned.

AAIF also leaves as the yield falls below 6%

The current constituent’s of the Snowball are

Property 3

Renewables 4

Loans 2

Cash 1

As a replacement share the Snowball is going to buy GCP Infrastructure.

GCP Infrastructure Investments Ltd (GCP) currently trades at a deep discount to NAV and offers a high yield, making it attractive for income-focused investors—but its elevated P/E ratio and sector headwinds suggest caution.
Here’s a detailed breakdown to help you assess whether GCP fits your strategy.

📊 Valuation & Performance Snapshot

• GCP Infra is a FTSE 250-listed, closed-ended investment company focused on UK infrastructure projects with long-term, public-sector-backed revenues.
• It targets sustained, regular dividends, and its portfolio includes renewable energy, social housing, and PFI assets.
• Recent buybacks suggest management sees value at current levels.

⚠️ Risks & Considerations

• High P/E ratio implies stretched valuation relative to earnings.
• Sector headwinds: Infrastructure and renewables have faced pressure from interest rate volatility and policy uncertainty.
• Discount to NAV is wide, but may persist if sentiment remains cautious.

Co Pilot can and does make mistakes, so

SDIP has been sold for a profit including dividends and all charges for a profit of

£1,563.00

As you can see from the above table the dividend paid is gradually decreasing.

Fcast for 2025 income £11,500, which includes a special dividend from VPC.

It should mean the Snowball will achieve the year five figure in the above table which equates to year three of the plan, which hopefully means it will achieve the year ten figure several years early.

The 2026 fcast is £9,817.86, although next year as a working example I may include in the Snowball a pair trade, which might mean the income may miss the target in the near term.

In November there should be enough accrued dividends to complete the position in ORIT, then further earned dividends could be applied to a term trade.

Cash for re-investment £747.70

For new readers, there are only 3 rules.

1. Buy Investment Trusts, ETF’s, CEF’s that pay a dividend and use those dividends to buy Investment Trusts, ETF’s, CEF’s that pay a dividend.
2. Any share that drastically alters it’s dividend policy must be sold, even at a loss.
3. Remember the rules.

Octopus Renewables Infrastructure Trust plc

(“ORIT” or the “Company”)

Sale of stake in Simply Blue’s offshore wind platform

Octopus Renewables Infrastructure Trust plc, the diversified renewables infrastructure company, today announces that investee company, Simply Blue Holdings (“Simply Blue”), has signed a Share Subscription Agreement with Kansai Electric Power Company, Incorporated, to acquire an 80% stake in Simply Blue Energy OSW Ltd (“SBE OSW”), Simply Blue Group’s offshore wind development arm.

The transaction follows the recent carve-out of Simply Blue’s sustainable fuels business into a newly formed entity, Nova Scotia Fuels, and represents the next step in realising value from ORIT’s investment in Simply Blue Group’s platform business.

The transaction consideration is in line with ORIT’s latest holding value of Simply Blue. Proceeds from the transaction will be used in part to repay the shareholder loan facility held by ORIT, with the residual value retained through ORIT’s ongoing minority interest in Simply Blue.

Chris Gaydon, co-fund manager of Octopus Renewables Infrastructure Trust plc, commented: “This is a solid outcome in what remains a challenging market for offshore wind developers. It reinforces our confidence in the Simply Blue team and reflects the strength of the partnership with Kansai who are ideally placed to move this platform forward.”

This 8% Dividend Loves Ridiculous “Bubble” Fears by Michael Foster, Investment Strategist Are we in a stock market bubble or not? Let’s tackle that question head-on, because it’s all we seem to be hearing about these days. I’ll put my cards on the table: We’re not in a bubble. I’m going to show you why I’m still bullish on stocks at these levels. Then we’re going to play overwrought bubble fears with a “cornerstone” fund that’s beaten stocks over just about every timeline but is still cheap (and yields a rich 8%, too). When it comes to stocks, the truth is, there’s a good reason why they keep rising: We’re in a booming economy. Of course, you might not feel that way – many communities across America are suffering. Income inequality, crime, corruption – it’s a mess out there. Those are all serious problems, to be sure. But just as the stock market is not the economy, the stock market is not society, either, and those problems can co-exist with a rising market. Where Earnings Go, Stocks Follow Stocks are rising because their moves are tied to one thing: earnings. And earnings are soaring. Bloomberg recently reported on something we’ve been talking about for a while here at Contrarian Outlook and in my CEF Insider service: Earnings are growing as companies improve their profits through efficiency gains, some of which are driven by AI. In fact, the earnings beats we’re seeing come from across the economy, from companies as diverse as General Motors (GM), Coca-Cola (KO), Morgan Stanley (MS) and, of course, tech names like Broadcom (AVGO) and Lam Research (LRCX). While tech continues to be the top-performing sector, there’s good reason to expect that more and more gains will come from outside of tech, as new innovations spread from that sector into other parts of the economy. This doesn’t mean we should simply avoid tech and buy the rest of the market. After all, tech’s earnings gains are the strongest out there and will likely remain so, although financials are a close second. At a time like this, we want broad-based market exposure. But of course, as my CEF Insider members know, we do not want an index fund. Their paltry 1% yields are just plain unacceptable to us income investors. The 8% Dividend Opportunity Instead, we’re going with a closed-end fund (CEF) that invests in a broad range of S&P 500 stocks, but with a key difference: This one pays a rich 8% yield. That would be the Adams Diversified Equity Fund (ADX), which holds tech darlings like Broadcom, as well as top performers from other sectors, like JPMorgan Chase & Co. (JPM). Thanks to its well-crafted portfolio, ADX hasn’t just matched the stock market’s returns over the last decade – it’s beaten it. ADX Ahead of the Pack  This is why, at CEF Insider, we’ve been holding ADX for almost the entire time shown on this chart (and we would’ve held it for the entire time if CEF Insider had launched in 2015, rather than in 2017). This outperformance is great – but so is the dividend. Big Payoffs – Now More Stable  ADX has yielded around 9.5% over the last decade, thanks to the huge special payouts management issued at year-end. But in 2024, the fund changed its distribution plans, going with a more evenly spread payout tied to the fund’s net asset value (NAV, or the value of its underlying portfolio). Now, ADX’s regular distributions are more consistent and reliable. The fund pays about 8% now, largely because the stock price is up over 13% in 2025 (as prices rise, yields fall). But its total return including dividends is 21.7% for the year, as of this writing, again far ahead of the S&P 500, at 16.6%. In other words, this fund has outperformed over the short and the long term. Yet it still trades at a discount to NAV. ADX’s Wide – But Narrowing – Discount  ADX’s discount is now 8.3%, but it was over 10% at the start of the year (and was around 12% most of the time before that). With the fund’s high yield, market outperformance and smartly built portfolio, this discount is likely to disappear, especially as more money comes into stocks as bubble fears fade. If you buy ADX today, you can still lock in this discount, boosting your upside potential while also securing that healthy yield. 4 Cheap 8% Dividends to Buy as Bubble Fears Spread, AI Grows As we just discussed, all of this bubble talk is a great setup for us to come at this market from the opposite direction as most investors: Instead of letting bubble fears drive us away from stocks, we’re buying. Specifically, we’re looking beyond Big Tech, at other sectors set to reap big profits as AI revolutionizes their businesses. These are the companies that are quietly adopting AI, but its value to their businesses is not priced in yet. We’re going to buy those stocks through – you guessed it – CEFs

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