Carbon Fund Unit Price Drops 21% as Salt Listed Funds Revises Investment Policy and Board
Salt Listed Funds released its 2026 annual report highlighting governance changes, investment policy updates including Treasury Units and Carbon-Related Businesses, and a notable decline in the Carbon Fund’s unit price over the year.
- Master Trust Deed amended following NZX Listing Rule repeals
- Investment policy expanded to include Treasury Units and Carbon-Related Businesses
- Carbon Fund unit price dropped from 1.7463 to 1.3786 over the year
- Significant increase in repurchased units held by the Carbon Fund
- Investment manager acquired and board refreshed with new directors
Governance Shifts Reflect NZX Listing Rule Changes
Salt Listed Funds’ annual report for the year ended 31 March 2026 reveals key governance adjustments driven by regulatory updates. The Master Trust Deed was revised notably to remove clauses linked to repealed NZX Listing Rules, including the Supervisor’s power to remove the Manager and consent requirements for changes in management. These deletions streamline the governance framework but may alter oversight dynamics.
Investment Strategy Broadens to Embrace Treasury Units and Carbon-Related Assets
The Carbon Fund’s investment policy has expanded to formally incorporate Treasury Units and financial products issued by Carbon-Related Businesses. This strategic pivot, reflected in updates to both the Product Disclosure Statement and Statement of Investment Policy and Objectives, signals a move towards deeper engagement with carbon markets and related financial instruments. The manager also appointed Apex as custodian and updated administrative service providers, indicating operational refinements.
Unit Price Decline and Repurchase Activity Highlight Fund Dynamics
The Carbon Fund’s unit price fell from 1.7463 at the start of the year to 1.3786 by 31 March 2026, marking a significant depreciation. Despite this, the fund increased its repurchased units substantially, from 32.53% to 52.65% of total units, buying nearly 9.5 million units over the period. This suggests active internal capital management, possibly reflecting confidence in the fund’s intrinsic value or a strategy to support unit price stability.
Investment Manager Acquisition and Board Refresh
Salt Funds Management Limited, the fund’s investment manager, was acquired by SPH Wealth Holdings Limited on 1 September 2025. This change coincided with a board reshuffle replacing Kate Armstrong and Paul Harrison with Mei Fong, Shane Edmond, and Brett Gamble. While the Scheme Manager and Supervisor remained unchanged, these leadership updates may influence future strategic and operational decisions.
Related Party Holdings Remain Steady Amid Transactions
Related party holdings showed minor shifts. Salt Funds Management exited its minimal holding, while Salt Long Short Fund and Salt Capital Growth Fund maintained their stakes. The Carbon Fund’s significant repurchase activity contrasts with these stable positions, underscoring its active role in managing fund liquidity and capital structure.
Bottom Line?
Salt Listed Funds is recalibrating its governance and investment approach amid a falling unit price, raising questions about how expanded carbon-related assets and internal repurchases will impact future performance.
Questions in the middle?
- Will the inclusion of Treasury Units and carbon-related financial products improve the Carbon Fund’s returns or increase its risk profile?
- How will the removal of Supervisor powers tied to repealed NZX Listing Rules affect oversight and investor protections?
- What strategic direction will the new investment manager board pursue following the acquisition by SPH Wealth Holdings?
