Ninepoint Carbon Credit ETF - Series F $USD

Ninepoint Carbon Credit ETF

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NPP948
Ninepoint Carbon Credit ETF

Overview

The Ninepoint Carbon Credit Fund presents a unique and impactful opportunity for investors to align their financial goals with a commitment to environmental sustainability, as the fund strategically navigates the burgeoning carbon credit market, contributing to both financial growth and positive climate change mitigation efforts.

  • Canadian First:

    Canadian First:

    First Carbon Credit mutual fund in Canada.

  • Emerging Asset Class:

    Emerging Asset Class:

    Access a US$851 billion market which has grown by 18x since 2017.1

  • Easy access:

    Easy access:

    Structured as an alternative mutual fund offering Series A, F, QF, D on Fundserv and as an ETF series (CBON / CBON.U).

  • Diversification:

    Diversification:

    Carbon Credit investments are expected to demonstrate low or negative correlation to traditional asset classes.

  • Global Exposure:

    Global Exposure:

    The Fund will primarily invest in global carbon emissions allowance futures.

     

1Refinitiv, “Carbon Market Year in Review 2021”. Global carbon markets value surged to record $851 bln last year-Refinitiv (Reuters - January, 2022).

Fund Objective

The investment objective of Ninepoint Carbon Credit ETF is to seek to provide unitholders with long-term capital appreciation by investing primarily in global carbon emissions allowance futures. The Fund may use derivatives. The maximum aggregate exposure to derivatives will not exceed 300% of the Fund’s net asset value, calculated on a daily basis.

Investment Team

  • John Wilson, MBA
    Co-CEO, Managing Partner, Senior Portfolio Manager
    John Wilson, MBA
    Co-CEO, Managing Partner, Senior Portfolio Manager
    John Wilson is a founding principal, Co-CEO and Managing Partner of Ninepoint Partners. John oversees all aspects of the firm’s investment and research initiatives. Prior to Ninepoint’s formation, he was CEO, CO-CIO and Senior Portfolio Manager at Sprott Asset Management (SAM). Previous to SAM, he was Chief Investment Officer at Cumberland Private Wealth Management, founder and CEO of DDX Capital Partners, an alternative investment management firm; was Managing Director at RBC Capital Markets...
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  • Etienne Bordeleau-Labrecque, MBA, CFA
    Vice President, Portfolio Manager
    Etienne Bordeleau-Labrecque, MBA, CFA
    Vice President, Portfolio Manager
    Etienne Bordeleau-Labrecque is Vice President, Portfolio Manager at Ninepoint Partners. With over 10 years of expertise across equities, interest rates and credit, he now focuses primarily on the firm’s Fixed Income franchise. Prior to Ninepoint’s formation, Etienne was with Sprott Asset Management (SAM) from 2012, where he worked as an Analyst and Associate Portfolio Manager, covering North American equities in the financial, energy, utility and health care sectors. From 2008 to 2011, Étienn...
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Performance

Compound Returns

As at 9/30/2024 (Series F $USD) NPP948
MTD % YTD % 1Y % 3Y % 5Y % 10Y % Inception %†
5.56
As at 10/31/2024 		-9.72 -6.87 - - - -8.78
†Inception Date: February 17, 2022

Monthly Returns (%)

As at 9/30/2024 (Series F $USD) NPP948
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
2024 -8.98 -2.89 7.61 2.52 10.09 -0.30 -4.06 2.21 -13.55 -9.27
2023 1.49 4.76 -4.08 -5.10 -4.60 3.57 0.04 0.49 -3.65 -0.02 -2.13 4.90 -4.93
2022 -1.68 -3.45 4.72 1.38 1.99 -8.58 5.08 -10.69 8.70 -4.96 0.05 -8.86

Growth of $10,000 Invested

As at 9/30/2024 (Series F $USD) NPP948

Risk Tolerance

  • Low
  • Low - Med
  • Medium
  • Med - High
  • High

Portfolio

As at 9/30/2024

Sector Allocation

Sector Weight %
TREASURY BILL (USD) 100.05
USD CASH 63.33
CAD CASH -0.24
EUR CASH -16.23
GBP CASH -46.90

Sector Allocation (Notional)

Sector Weight %
CALIF CARBON ALLOWANCE VINT DEC 25 13.85
ICE ECX EMISSION EUA DEC 25 13.71
ICE ECX EMISSION EUA DEC 24 13.29
UK EMISSION ALLOWANCE DEC 25 12.44
RGGI (RJ5) VINTAGE 2025 12.15
CALIF CARBON ALLOWANCE V24 DEC 24 12.03
UK EMISSION ALLOWANCE DEC 24 11.84
RGGI VINTAGE 24 DEC 24 11.64
Net Cash and Equivalents -0.95

Statistical Analysis

As at 9/30/2024 (Series F $USD) NPP948
Statistics Fund
Cumulative Return -21.38%
Sharpe Ratio -0.63
Standard Deviation 19.47%
Total Positive Months 16
Total Down Months 15
Growth of 10K $7,861.60

Facts, Fees & Fund Codes

Facts
Fund Type
Global Commodities Alternative Mutual Fund
Inception Date
2/17/2022
Registered Tax Plan Status
Eligible
Performance Fee
-
Minimum Initial Investment
$500
Minimum Subsequent Investment
$25
Minimum Investment Term
20 days (1.5% penalty)
Redemptions
Daily
Valuations
Daily
CUSIP
CBON: 65443L101 (Cboe)
CBON.U: 65443L200 (Cboe)
Fees
Management Fee
Series A: 1.75%
Series D: 0.75%
Series ETF: 0.75%
Series F: 0.75%
Series QF: 0.65%
Series S: 1.55%
Series SF: 0.55%
Ticker & Fund Codes
Series A $USD NPP947
Series D $USD NPP954
Series ETF $USD * CBON.U
Series F $USD NPP948
Series QF $USD NPP955
Series S $USD 1 NPP1001
Series SF $USD 1 NPP1000
Series A NPP899
Series D NPP897
Series ETF * CBON
Series F NPP898
Series QF NPP895
Series S 1 NPP1007
Series SF 1 NPP1006
*Exchange: Cboe Canada Exchange
1Closed to new purchases.

Education

Emissions Trading Systems (ETS) and Carbon Credits

In an emissions trading system - sometimes referred to as a cap-and-trade system, a regulator or government-entity sets a policy objective to reduce emissions in their region and sets a cap on total emissions allowable. Within an emissions trading system, the regulator splits the cap into carbon allowances or credits. A company regulated under the emission trading system can acquire carbon credits from the regulator, purchase through secondary markets, or reduce its emissions.

After each compliance period, regulated companies must surrender enough carbon credits to cover its emissions, or be heavily fined. Each year the regulator reduces the total number of allowances available, thereby achieving lower emissions targets.

An Emerging Asset Class

In the energy transition economy, many believe setting a price on carbon, and allowing that price to rise, is one of the best ways to encourage polluters to limit emissions and drive innovation in green technology.

According to the European Commission, companies covered by the European Union Emission Trading System (ETS) reduced emissions by about 35% between 2005 and 2019. In the United States, California launched its own ETS in 2013, and have since reduced emissions from sources covered by the ETS by 10% from 2013 to 2018.

What is a Carbon Credit?

A carbon credit is a permit allowing the holder to emit carbon dioxide or other greenhouse gases. One carbon credit represents one ton of CO2.

Source: Ministry of the Environment and the Fight Against Climate Change.

A unique investment opportunity

According to financial market data provider Refinitiv, the total value of global carbon market reached US$851 billion in 2021.2 Energy consulting firm Wood Mackenzie estimates that the global emissions trading market could be worth as much as $22 trillion by 2050.3

ETS systems are operating in 38 countries covering over 40% of global GDP. Some of the largest ETSs globally include:

• EU ETS
• California/Quebec
• US Eastern
•United Kingdom (UKA)

 

1 Refinitiv, “Carbon Market Year in Review 2021”. Global carbon markets value surged to record $851 bln last year-Refinitiv (Reuters - January, 2022).
2 Refinitiv, “Carbon Market Year in Review 2021”.
3 Wood Mackenzie, “COP26: Make or Break for Global Emissions Trading”.

Global Carbon Markets
Carbon Credit Brochure
Carbon Credit Market Faq

Documents

All returns and fund details are a) based on Series F $USD shares; b) net of fees; c) annualized if period is greater than one year; d) as at 9/30/2024. Sector allocation as at 9/30/2024. Sector allocation based on % of net asset value. Numbers may not add up due to rounding. Cash and cash equivalents include non-portfolio assets and/or liabilities.

The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the investment fund or returns on investment in the investment fund.

The Fund is generally exposed to the following risks: Cap and trade risk; Collateral risk; Commodity risk; Concentration risk; Cybersecurity risk; Derivatives risk; Foreign currency NAV risk; Foreign investment risk; Inflation risk; Interest rate risk; Leverage risk; Liquidity risk; Market risk; Regulatory risk; Securities lending, repurchase and reverse repurchase transactions risk; Series risk; Substantial securityholder risk; Tax risk. Additional risks associated with an investment in ETF Series securities of this Fund include: Absence of an active market for ETF Series risk; Halted trading of ETF Series risk; Trading price of ETF Series risk.

Ninepoint Partners LP is the investment manager to a number of funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rates of return for series F $USD units of the Funds for the period ended 9/30/2024 are based on the historical annual compounded total returns including changes in unit value and reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.

The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

Ninepoint Partners LP: Toll Free: 1.866.299.9906. Dealer Services: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540