Summary

The Munro Climate Change Leaders Fund is focused on creating a portfolio of climate winners that help enable the decarbonisation of the planet – those companies that are best positioned to champion and win from this structural change. The Fund was launched on 29 October 2021.

Key facts

Investment

Global equities

Strategy

Growth - Climate stocks

Fund type

Long only - managed fund

Area of Interest

Climate

Number of positions

15 - 25

Fund inception

29 October 2021

Minimum suggested investment period

5+ years

Pricing

Daily

Distributions

Annual

Suitability

The Fund is designed for investors seeking a long term exposure to a portfolio of high quality global growth and climate change focused equities with the potential for capital gains. The investment return objective of the Fund is to maximise long term capital appreciation, by investing primarily in a concentrated long-only portfolio of companies focused on decarbonisation and climate change located anywhere in the world. The Fund aims to achieve a return greater than the MSCI All Country World Index (Net) in $A over a 5 to 7 year period.

The Fund will invest in a concentrated portfolio of 15 to 25 listed equities across a range of industries and countries whose earnings prospects should improve with increased investment and focus on decarbonisation.

You may consider this fund if you are looking for capital growth, intend to invest in global growth equities for at least 5-7 years, accessing leading-edge companies focused on decarbonisation and wish to remain fully invested (less than 10% cash) and are therefore less concerned by short term market volatility.

This Fund is not suitable for those investors with a short investment time horizon (less than 5 years), seeking regular income or does not have a high / very high tolerance for risk given full exposure to climate-related equities.

How it's different

Each of Munro's funds are focused on finding global structural growth winners, however the Munro Climate Change Leaders Fund is focused on creating a portfolio of climate winners that help enable the decarbonisation of the planet – those companies that are best positioned to champion and win from this structural change.

In comparison to many other climate funds that focus on index weighted net-zero businesses, the Munro Climate Change Leaders Fund is built on a concentrated long-only portfolio of 15 to 25 companies combatting climate change.  

The strategy specifically targets listed companies across a range of industries and countries whose earnings prospects should improve with the increased investment and focus on decarbonization.  

Munro has identified four sub-sectors or sub-trends of interest related to the world’s move toward a net zero carbon emissions goal:

  • Clean Energy – Companies at the forefront of renewable energy generation covering wind, solar and renewable diesel.
  • Clean Transport – Companies benefiting from the growth of electric vehicles, battery technology and alternative transportation.
  • Energy Efficiency – Companies at the forefront of insulation products, electrical switches, lighting and metering technology.
  • Circular Economy – Companies most likely to benefit from efforts to improve recycling, alternative packaging materials and management of wastewater.

These sub-sectors, or sub-trends of interest, devoted to decarbonisation may change over time based on the qualitative and quantitative assessment of Munro.

Munro’s investment process, honed over 15 years, is based on the ability to identify sustainable growth trends that are under appreciated and mispriced by the market, and the resulting winning stocks. Climate investment is at the very start of its s-curve, with many new climate technologies still early in the adoption phase and therefore having the potential for significant growth. Munro aims to create a portfolio of climate winners that help enable the decarbonisation of the planet.

Our Chief Investment Officer, Nick Griffin, explains the Case for Climate in this 3 minute video:

TOP 5 HOLDINGS

Nextera Energy (US)

7.1%

Tesla (US)

7.1%

Infineon Tech (Germany)

6.4%

Trane Technologies (Ireland)

6.1%

Ball Corp (US)

6.1%

Full portfolio (lag)

RegionAL Exposure

United States

53%

Europe

40%

Asia

5%

Cash

2%

Areas of interest
Performance
Unit pricing