Munro Climate Change Leaders Fund

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.

Many other climate funds simply take an index approach skewed towards companies with low operational emissions regardless of whether they contribute to decarbonisation. In contrast, the Munro Climate Change Leaders Fund is built on a concentrated long-only portfolio of 15 to 25 companies that actively enable decarbonisation.

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 benefitting from the demand for carbon-free and renewable energy including energy generation covering wind, solar and renewable fuels.
• Clean Transport – Companies benefitting from the growth of electric vehicles, battery technology and other low carbon transportation.
• Energy Efficiency – Companies offering insulation products, electrical switches, lighting, metering and other energy efficient technologies.
• Circular Economy – Companies benefiting from efforts to improve recycling, alternative packaging materials and management of waste, wastewater, agriculture technologies and other services aimed at reducing reliance on raw materials.

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: