Munro takes climate fund to New Zealand

GSFM affiliate Munro Partners' Global Growth Climate Leaders Fund has entered the New Zealand market.

The fund, which was spawned from the Munro Climate Change Leaders Fund, has been set up as a portfolio investment entity (PIE) for Kiwi wholesale investors.

Marking its first fund launch in New Zealand, GSFM will distribute the fund, while Wellington-based Adminis Funds is the manager and issuer.

A long-only strategy, the fund invests in 15 to 25 companies focused on decarbonisation and are tipped to benefit from clean energy and transport, the circular economy and energy efficiency.

It also aims to achieve a return greater than the MSCI All Country World (Net) Index in $NZ (Net) over a five- to seven-year period.

Having launched in 2021, the Munro Climate Change Leaders Fund has returned 60% p.a. while its benchmark achieved 48% p.a. In the year to February it made 29% p.a. while the benchmark returned 21% p.a.

Some of the top holdings are Linde, Clean Harbors, Constellation Energy and Quanta Services.

GSFM chief executive Damien McIntyre said the firm has been exploring the possibility of distributing its partners' funds in the New Zealand market for some time and is kicking off its expansion into New Zealand with the Munro fund.

"Our commitment to New Zealand is solid - and the decision was made to launch as a PIE, rather than as a feeder fund. The portfolio investment entity (PIE) gives New Zealand investors the most efficient structure for their investment," he said.

"The Munro fund will be the first PIE GSFM will distribute in New Zealand, but we are looking at opportunities for our other fund manager partner's strategies, as many of them are well placed to meet the needs of this market."

GSFM currently has about $10.6 billion in funds under management.