Salt Funds to launch NZ's first NZX-listed carbon fund
Salt Funds to launch New Zealand’s first NZX-listed carbon fund
15 October 2018 – Salt Funds Management, a boutique investment management firm, is preparing to launch New Zealand’s first NZX-listed investment fund – designed to trade in New Zealand and international carbon credits.
The Carbon Fund is scheduled to open for investment on 23 October 2018, giving investors the opportunity to invest in New Zealand’s lower carbon future.
The fund, which will be structured as a Portfolio Investment Entity, is currently scheduled to list on the NZX Main Board on 8 November 2018.
Paul Harrison, Managing Director of Salt Funds, said: “The global economy is in transition and the price of carbon is becoming an important factor for investors; as a cost, as an influence and now as an investment opportunity.
“This fund positions carbon as a new alternative asset and aims to give individuals and organisations a chance to invest in, or offset these changes.”
The Carbon Fund offers exposure to the price of carbon credits (or Units), which will be bought from the emissions trading scheme in New Zealand or offshore carbon markets.
Emissions trading schemes (ETSs) have been adopted by many countries as a primary tool to lower carbon emissions.
“Trading schemes place a price on carbon, which helps to shift the economic burden of emissions back to those responsible for it, and who are able to change it,” says Harrison.
The fund is being launched amid a global focus on tackling climate change. In New Zealand, the Government is actively exploring ways to meet its Paris Agreement commitments.
In August, the Productivity Commission presented its low-emissions economy report to Government, including a directive that the emissions price created through the New Zealand ETS will need to rise significantly over the next three decades.
The Government is also currently reviewing submissions on its Carbon Zero Bill, in the context of an ambition to achieve net-zero emissions by 2050.
Salt Funds is currently not seeking any money in relation to the Carbon Fund. Following FMA approval, a formal Offer will be launched to the public where investors will be able to invest a minimum amount of $5,000.
The fund’s risk rating has been calculated as high. Salt Funds encourages interested investors to seek independent financial advice before making any investment decision.
Investments will be able to be made either through an investment advisor or directly through the Carbon Fund website, www.carbonfund.co.nz, which is currently accepting registrations of interest to receive further information.
Salt Investment Funds Limited is the issuer of units in the Carbon Fund. The product disclosure statement for the Carbon Fund is available fromwww.disclose-register.companiesoffice.govt.nz.
The fund will be issued by Salt Fund’s subsidiary, Salt Investment Funds Limited. Salt Funds will provide the investment management services to the fund.