Carbon Fund — Interim / Quarterly Report 2021

Jun 3, 2021

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Quarterly Fund Update: Carbon Fund – 31 March 2021

This fund update was first made publicly available on 3 May 2021.

What is the purpose of this update?

This document tells you how the Carbon Fund has performed and what fees were charged. The document will help you to compare the fund with other funds. Salt Investment Funds Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.

Description of this fund

The Carbon Fund’s investment objective is to provide investors with a total return exposure to movements in the price of carbon credits. The Fund has the ability to buy carbon credits in emissions trading schemes in New Zealand and offshore. As a result, the Fund may also provide exposure to the price of carbon offshore.

Total value of the fundThe date the fund started	$13,542,0048 November 2018
Number of investors in the fund	315

What are the risks of investing?

Risk indicator for the Carbon Fund

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The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down. A higher risk generally means higher potential returns over time, but more ups and downs along the way.

To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at www.sorted.org.nz/tools/investor-kickstarter.

Note that even the lowest category does not mean a risk-free investment, and there are other risks that are not captured by this rating.

This risk indicator is not a guarantee of a fund’s future performance. The risk indicator is based on a mix of the historical price of carbon credits in NZ and actual Fund returns for the five years to 31 March 2021. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator will continue to be updated in future fund updates.

See the product disclosure statement (PDS) for more information about the risks associated with investing in this fund.

How has the fund performed?

Past year to 31 March 2021

Annual return 37.75% (after deductions for charges and tax) Annual return 37.75% (after deductions for charges but before tax)

There is no appropriate market index and no suitable peer group index against which to assess the performance of the fund. For more information about the market index see the offer register at www.business.govt.nz/disclose.

Annual return graph

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----- Start of picture text ----- 37.75%40%30%20%12.10%10%0%Mar 20 Mar 21 Average Annualised-10% -5.74% Return----- End of picture text -----

This shows the return after fund charges and tax for each year ending 31 March since the fund started. The last bar shows the average annual return since the fund started, up to 31 March 2021.

Important : This does not tell you how the fund will perform in the future.

Returns in this update are after tax at the highest prescribed investor rate (PIR) of tax for an individual New Zealand resident. Your tax may be lower.

What fees are investors charged

Investors in the Carbon Fund are charged fund charges. In the year to 31 March 2020, these were:

		% of net assetvalue
	Total fund chargesWhich are made upof:Total management and administration chargesIncluding:	0.97%0.97%
	Manager’s basic fee	0.97%
	Other management and administration charges	0.00%
	Totalperformance-based fees	0.00%

Investors may also be charged individual action fees for specific actions or decisions (for example, for withdrawing from or switching funds). See the PDS on the offer register at www.business.govt.nz/disclose for more information about those fees.

SALT FUNDS MANAGEMENT

Level 3, The Imperial Buildings, 44 Queen Street | PO Box 106-587, Auckland 1143 P: +64 9 869 2933 | E: info@saltfunds.co.nz | www.saltfunds.co.nz

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Example of how this applies to an investor

Small differences in fees and charges can have a big impact on your investment over the long term.

Sam had $10,000 in the fund at the date the fund started and did not make any further contributions. At the end of the year, Sam received a return after fund charges were deducted of $3,775 (that is 37.75% of his initial $10,000). Sam did not pay any other charges. This gives Sam a total return after tax of $3,775 for the year.

What does this fund invest in?

This shows the types of assets that the fund invests in.

Actual investment mix

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----- Start of picture text ----- Commodities (CarbonCredits) - 94.31%Cash & cashequivalents - 5.69%----- End of picture text -----

Target investment mix

Commodities(Carbon Credits)	98%
Cash	2%

Key personnel

Matthew Goodson
Currentposition	ManagingDirector
Time inposition	7years & 10 months
Previous position	Portfolio Manager at BT Funds Management(NZ)Limited
Time inposition	4years & 5 months
Paul Harrison
Currentposition	ManagingDirector
Time inposition	7years & 10 months
Previous position	Portfolio Manager at BT Funds Management(NZ)Limited
Time inposition	5years
Paul Turnbull
Currentposition	Chief Investment Officer
Time inposition	1year & 10 months
Previousposition	Research Analyst at Jarden
Time inposition	6 Years
Tristan Joll
Currentposition	Senior Investment Analyst
Time inposition	1year & 10 months
Previousposition	Director,EquityResearch at Jarden
Time inposition	3 Years
Michael Kenealy
Currentposition	Investment Analyst
Time inposition	6years & 9 months
Previousposition	Investment Analyst at Solid Investments
Time inposition	2years & 2 months

Further information

You can also obtain this information, the PDS for the Carbon Fund, and some additional information from the offer register at www.business.govt.nz/disclose.

Top 10 investments

Name	% of FundNet Assets	Type	Country
Carbon Credits - NZEmissions TradingScheme	85.8%	Commodities	NZ
Carbon Credits - AUEmissions TradingScheme	8.51%	Commodities	AU
Cash (NZD)	5.69%	Cash & CashEquivalents	NZ

The top 10 investments make up 100% of the net asset value of the fund .

QUARTERLY FUND UPDATE | Carbon Fund