CO2 Fund Update

SALT FUNDS MANAGEMENT
Level 3, The Imperial Buildings, 44 Queen Street | PO Box 106-587, Auckland 1143
P: +64 9 869 2933 | E: info@saltfunds.co.nz | www.saltfunds.co.nz



Quarterly Fund Update: Carbon Fund – 31 March 2019
This fund update was first made publicly available on 2 May 2019
What is the purpose of this update?
This document tells you how the Carbon Fund has performed and what
fees were charged. The document will help you to compare the fund with
other funds. Salt Investment Funds Limited prepared this update in
accordance with the Financial Markets Conduct Act 2013. This information
is not audited and may be updated.
Description of this fund
The Carbon Fund’s investment objective is to provide investors with a
total return exposure to movements in the price of carbon credits. The
Fund has the ability to buy carbon credits in emissions trading schemes in
New Zealand and offshore. As a result, the Fund may also provide
exposure to the price of carbon offshore.

Total value of the fund 1,546,455
The date the fund started 8 November 2018
Number of investors in the fund 84

What are the risks of investing?
Risk indicator for the Carbon Fund

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how
much the value of the fund’s assets goes up and down. A higher risk
generally means higher potential returns over time, but more ups and
downs along the way.
To help you clarify your own attitude to risk, you can seek financial advice
or work out your risk profile at www.sorted.org.nz/tools/investor-
kickstarter.
Note that even the lowest category does not mean a risk-free investment,
and there are other risks that are not captured by this rating.
This risk indicator is not a guarantee of a fund’s future performance. The
risk indicator is based on the returns data for a five-year period to 31
March 2019. While risk indicators are usually relatively stable, they do
shift from time to time. The risk indicator will continue to be updated in
future fund updates.
See the product disclosure statement (PDS) for more information about
the risks associated with investing in this fund.

How has the fund performed?
Past year to 31 March 2019
Annual return
(after deductions for charges and tax)
Not applicable
Annual return
(after deductions for charges but before tax)
Not applicable
Market index annual return
(reflects no deduction for charges and tax)
Not applicable

There is no appropriate market index and no suitable peer group index
against which to assess the performance of the fund. For more
information about the market index see the offer register at
www.business.govt.nz/disclose.

What fees are investors charged
Investors in the Carbon Fund are charged fund charges. In the year to 31
March 2019, these were:


% of net asset value
Total fund charges
Which are made up of:
0.95%
Total management and administration
charges
Including:
0.95%
Manager’s basic fee 0.95%
Other management and administration
charges
0.00%
Total performance-based fees 0.00%

See the PDS on the offer register at www.business.govt.nz/disclose for
more information about those fees.

Example of how this applies to an investor
Small differences in fees and charges can have a big impact on your
investment over the long term.
Sam had $10,000 in the fund at the date the fund started and did not
make any further contributions. At the end of the year, Sam incurred a
gain after fund charges were deducted of $125 (that is 1.25% of his initial
$10,000). Sam did not pay any other charges. This gives Sam a total gain
after tax of $125 for the year.

QUARTERLY FUND UPDATE | Carbon Fund

What does this fund invest in?
This shows the types of assets that the fund invests in.
Actual investment mix

Target investment mix
Commodities (Carbon Credits) 98%
Cash 2%

Top 10 investments

Name
% of Fund
Net Assets
Type Country
Carbon Credits - NZ
Emissions Trading
Scheme
99.94% Commodities NZ
Cash (NZD) 0.06%
Cash & Cash
Equivalents
NZ

The top 10 investments make up 100% of the net asset value of the fund.





















Key personnel

Matthew Goodson
Current position Managing Director
Time in position 5 years & 10 months
Previous position
Portfolio Manager at BT Funds
Management (NZ) Limited
Time in position 4 years & 5 months

Paul Harrison
Current position Managing Director
Time in position 5 years & 10 months
Previous position
Portfolio Manager at BT Funds
Management (NZ) Limited
Time in position 5 years

David Oxley
Current position Head of Research
Time in position 5 years & 10 months
Previous position
Head of Research at BT Funds
Management (NZ) Limited
Time in position 3 months

Andrew Bolland
Current position Investment Analyst
Time in position 5 years & 10 months
Previous position
Analyst at BT Funds Management (NZ)
Limited
Time in position 2 years and 6 months

Michael Kenealy
Current position Investment Analyst
Time in position 4 years & 9 months
Previous position Investment Analyst at Solid Investments
Time in position 2 years & 2 months

Further information
You can also obtain this information, the PDS for the Carbon Fund, and
some additional information from the offer register at
www.business.govt.nz/disclose.

Commodities (Carbon
Credits) - 99.94%
Cash & cash equivalents
- 0.06%