15 to 25 enablers of one of the biggest investment themes for the coming decades

Nick Griffin from Munro Partners believes a significant part of his role as a growth investor is following the money. 

In that vein, he sees a clear line connecting the problems that need to be solved regarding climate change, "what every corporation in the world is telling us" regarding lowering their carbon footprint, and the $50-100 trillion that will be spent over the coming decades to solve it. 

"We think this is a great investment opportunity", says Griffin.

While the premise above is rudimentary, finding the right opportunities is where Griffin believes he and the Munro team can add value. Munro is focused on finding 15-25 "enablers of decarbonisation that are going to help solve this problem over the next 10 to 20 years".

He eschews ETFs and actively positions the Munro Climate Change Leaders against them, adding that while they have their purpose "they're just taking an index of a hundred stocks and saying, these companies all claim to decarbonise, let's put them all in an index and let's invest". 

"From our point of view, we think our active management capabilities can outperform those ETFs", adds Griffin. 

In the following Fund in Focus, Griffin dives deeper into Munro's process for identifying the winners within climate, why this opportunity won't be a 'winner-take-most' scenario, and some of the stocks that the fund is invested in right now. 

• Name: Munro Climate Change Leaders (ASX: MCCL)
• Asset Class: Equities
• Investment objective: to maximise long term capital appreciation, by investing primarily in a concentrated long-only portfolio of companies focused on decarbonisation and climate change located anywhere in the world. The Fund aims to achieve a return greater than the MSCI All Country World (Net) Index in $A (Net) over a 5 to 7 year period. The Fund is not intended to replicate the index.
• Link to fund page: click here

Please note, that this interview was filmed on 26 February 2024.

Timestamps

0:00 - Intro
0:20 - The two reasons for investing in climate
2:03 - Why the ETMF structure?
3:13 - The size and scale of the opportunity
4:40 - Why this isn't a 'winner-take-most' scenario
5:48 - Where are the best opportunities right now?
7:04 - Two stocks that stand out
8:25 - Using MCCL in a portfolio

Access to a $50 trillion opportunity

The Munro Climate Change Leaders Fund (ASX: MCCL) is focused on creating a portfolio of climate winners that help enable the decarbonisation of the planet – those companies that are best positioned to champion and win from this structural change. Find out more below, or by visiting the Munro website.

ETF

Munro Climate Change Leaders Fund (Managed Fund) (MCCL)

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