Apostle launches Global Carbon Credit Fund

Oksana Patron

28 March 2023

Apostle Funds Management has announced the launch of the Global Carbon Credit Fund which will offer exposure to global carbon markets for sophisticated and institutional investors, allowing them to take “active role” in the global decarbonisation.

The fund would seek to outperform a global carbon benchmark by at least 2% per annum net of fees over rolling five-year periods.

The firm also said that the wholesale unregistered fund would be actively managed with diversification across major markets – California, Europe, UK, New Zealand and Australia and would offer investors holistic exposure to the carbon price and helps reduce volatility through jurisdictional diversification.

It would also aim to provide investors with beta carbon price exposure to both established and emerging carbon markets, combined with an active management component that is expected to deliver greater opportunity for alpha and provides superior returns at a lower risk.

“Compliance Carbon markets have a strong outlook and are an essential component of a low-emission economy,” Apostle’s Partner, Global Carbon Markets Luke Donovan, said.

“These markets are regulated and mandated by governments worldwide, with oversight and control mechanisms in place to ensure integrity and scalability. Our fund provides a robust return outlook and diversification with other asset classes while also serving as a hedge against climate risk and inflation.”

Apostle’s Managing Director Karyn West commented on the launch, “This fund has been a long time in the making and complements our other ethical investment strategies. Connecting pools of capital with the problems that face our economy is critical to progress and is core to our business, which is why we are pleased to bring this Fund to market.”