“Munro believes climate change – and the elimination of carbon – presents the biggest investment opportunity since the internet. ”
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 the increased investment in, and focus on, decarbonisation.
The investment process, honed over 15 years, is based on the ability to identify sustainable growth trends that are underappreciated and mispriced by the market, and the resulting winning stocks. Climate investment – a major structural change – 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. The aim is to create a portfolio of climate winners that help enable the decarbonisation of the planet.
Munro has initially 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, may change over time, based on the investment team’s qualitative and quantitative assessments.
Munro recognises and has integrated Environmental, Social and Governance (ESG) considerations into its investment process and in the monitoring of portfolio investments. The proprietary investment process includes qualitative factor assessment incorporating sustainability and customer perception as two key parts of a company’s characteristics. Companies that are focused on short-term financial goals at the expense of long-term sustainability and customer perceptions are generally excluded.
The Fund at a glance
- Contribute to the decarbonisation of the planet
- Access to climate-related investment opportunities
- Focus on growth investments
- Actively manages 15–25 positions focused on decarbonising the planet
- Access to an experienced investment team with a 15-year track record
- Complements other broad-based global equity strategies