Carbon Fund Quarterly 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 – 30 June 2020
This fund update was first made publicly available on 28 July 2020.
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
$6,111,704
The date the fund started 8 November 2018
Number of investors in the fund 164

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 a mix of the historical price of carbon credits in NZ and
actual Fund returns for the five years to 30 June 2020. 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 30 June 2020
Annual return
(after deductions for charges and tax)
24.64%
Annual return
(after deductions for charges but before tax)
24.64%

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.

Annual return graph

This shows the return after fund charges and tax for each year ending 31
March since the fund started. The last bar shows the average annual return
since the fund started, up to 30 June 2020.
Important: This does not tell you how the fund will perform in the future.
Returns in this update are after tax at the highest prescribed investor rate (PIR)
of tax for an individual New Zealand resident. Your tax may be lower.
What fees are investors charged
Investors in the Carbon Fund are charged fund charges. In the period since
inception to 31 March 2019, these were:



% of net asset
value
Total fund charges
Which are made up of:
0.96%
Total management and administration charges
Including:
0.96%
Manager’s basic fee 0.96%
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.
-5.74%
10.28%
-8.00%
-4.00%
0.00%
4.00%
8.00%
12.00%
Mar 20Average Annualised Return

QUARTERLY FUND UPDATE | Carbon Fund

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 received a return after
fund charges were deducted of $2,464 (that is 24.64% of his initial $10,000).
Sam did not pay any other charges. This gives Sam a total return after tax of
$2,464 for the year.

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
97.83% Commodities NZ
Cash (NZD) 2.17%
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 7 years & 1 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 7 years & 1 months
Previous position
Portfolio Manager at BT Funds Management
(NZ) Limited
Time in position 5 years

Paul Turnbull
Current position Chief Investment Officer
Time in position 1 year & 1 month
Previous position Research Analyst at Jarden
Time in position 6 Years

Tristan Joll
Current position Senior Investment Analyst
Time in position 1 year & 1 month
Previous position Director, Equity Research at Jarden
Time in position 3 Years

Michael Kenealy
Current position Investment Analyst
Time in position 6 years
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) - 97.83%
Cash & cash equivalents
- 2.17%