Salt Investment Funds Ltd listed New Zealand’s first carbon fund on the NZX today, trading under the ticker code CO2.
The initial public offering opened on 23 October and closed on 5 November. Salt raised just over $1 million in applications from retail & institutional investors for the fund, which is open-ended and will continue to accept applications.
Salt managing director Paul Harrison said: “This is uncharted territory for many investors, so we are particularly pleased with the result.
“We are receiving interest in the fund from 3 broad investor categories: those seeking to invest in the future price of carbon as a commodity; those with a financial risk exposed to a higher price on carbon; and those who want to contribute to slowing climate change.
“Listing the fund on the NZX is about providing investors with a transparent & dynamic trading environment, which in turn will build a stronger understanding of the investor market for carbon.”
Mr Harrison said Salt started work on bringing a carbon fund to market 6 years ago: “Now is the right time to be doing this – ahead of the significant social, economic, environmental & technological change coming in response to our warming climate.”
The fund’s risk rating is calculated as high, and Salt encourages investors to seek independent financial advice before making any investment decision on it.
The Carbon Fund’s website says of its prospects: “Independent reports point toward a higher carbon price as an important part of New Zealand’s carbon emissions reduction. These reports indicate that higher carbon prices help to shift the economic burden of emissions onto emitters, and fuel new low-carbon drivers of economic growth.”
The Carbon Fund is designed to trade in New Zealand & international carbon credits. Its manager, Salt Investment Funds, is a subsidiary of Salt Funds Management Ltd, which manages $2 billion of funds.
Attribution: Company release, website.