Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Salt Funds to open up carbon trading to retail investors

Salt Funds to open up carbon trading to retail investors in NZX-listed fund

By Paul McBeth

Oct. 15 (BusinessDesk) - Salt Funds Management plans to list a dedicated carbon fund, opening up the green commodity directly for retail investors.

Salt's Carbon Fund is expected to be 98 percent invested in carbon commodities, with 2 percent held in cash and equivalents. The fund will buy credits in New Zealand's emissions trading scheme and also in international schemes. It may use swaps, futures and other derivatives to get exposure to those markets.

The offer is expected to open next week but isn't seeking money yet. Salt plans to list the Carbon Fund on the NZX next month.

"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," managing director Paul Harrison said in a statement.

Provided the offer gets Financial Markets Authority approval it will be the first listed green investment entity in New Zealand. The units will be sold at $1 each with a minimum $5,000 investment.

NZX has been keen to foster a wider use of green investment tools and vehicles, with a growing number of green bonds listed on the debt market. At the same time, the government is charging ahead with its Carbon Zero legislation. The Crown's provisioning for emissions trading scheme credits rose to $2.54 billion as at June 30 from $2.03 billion a year earlier, with the carbon price rising to $21.10 per unit from $17.20 in June 2017.

The Carbon Fund will be at the high end of the risk register in that it's asset-specific and the product disclosure statement says it won't be appropriate for all investors, with a number of factors influencing prices such as political decisions, regulation, fuel prices, and weather and climate change.

"The historical carbon price has been quite volatile relative to traditional asset classes such as shares and bonds," the offer document said. "Price fluctuation plays a significant role in the carbon market and carbon dioxide emissions reduction."

Salt Funds will charge about 0.95 percent of funds under management to cover management and administration costs.

The fund manager won't measure the fund's performance against an index, saying there isn't an appropriate peer group.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


FIRST Union: Do Shareholders Realise Marsden Point Conversion Could Cost More Than Half A Billion Dollars?

FIRST Union, the union representing workers at Refining NZ, are querying whether shareholders voting on Friday on whether to convert the Marsden Point refinery to an import-only terminal realise the conversion could cost $650-700 million dollars... More>>



Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>



Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>


Transport: July 2021 New Vehicle Registrations Boosted By EV Rebate Scheme
Motor Industry Association Chief Executive David Crawford says that July 2021 sales of new vehicles were boosted by the recently introduced rebate scheme. July 2021 registrations were 15,053 units compared to 12,263 units for July 2020... More>>



ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>


Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>