The World Carbon Fund invests globally into the most liquid, regulated carbon markets or Emission Trading Systems (ETS). The fund objectives are to generate absolute returns with a low correlation plus a direct impact on climate change. 

Executive Summary

Carbon Cap manages the World Carbon Fund which launched earlier this year. Click below for more details on this unique fund.



Executive Summary
Carbon Pricing

Our CFA Case Study

In September 2020 the CFA Institute published our case study “Carbon as an Emerging Asset Class” which is an extract from our full research paper. Click below to access the case study.

Our CFA Case Study
Emissions Trading

CFA Research

Click below for the full CFA Institute Research Handbook “Climate Change Analysis in the Investment Process”




CFA Research

Monthly Performance

If you would like to receive the latest fund performance information, please get in touch to be added to our distribution list.




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World Carbon Fund Investment Thesis & Climate Impact

If climate change is to be tackled and Paris Agreement targets met, then the price levied on carbon emissions needs to rise substantially over the next 5-10 years with many forecasting a price of $60-100/tonne compared to c.$20 today. 

  • The research highlights the strong returns generated from global carbon markets and the fact that carbon has exhibited very low correlation to
    traditional and alternative asset classes and we expect this to continue.
  • Compliance carbon markets are highly regulated and very liquid, trading more than $250 billion in 2019 but remain dominated by industrials and other
    compliance entities, seeking to manage their carbon exposures. This provides considerable alpha generation opportunity for financial investors.
  • These markets have proven to be volatile in the past and may well remain so in the future. This provides additional opportunities to add
    value through risk management as well as implement strategies that can benefit from this volatility.
  • The Co-Portfolio Manager, Nigel Felgate PhD has an outstanding track record investing in energy and carbon markets for more than 15 years at
    firms such as JP Morgan, Morgan Stanley and Merrill Lynch.
  • Carbon Cap has committed 20% of performance fees to the purchase and cancellation of carbon allowances/offsets in order to
    have direct climate change impact.
  • We have calculated that a $5 million investment into the fund and a 10% net return, would result in approximately 1,000 tonnes of cancelled
    carbon emissions per year. This is roughly equivalent to the carbon footprint of 100 individuals and greater than the annual carbon footprint of many family offices or small businesses including their business travel.

The combination of a favourable political tailwind, low correlation, plentiful sources of alpha, and high volatility lends itself well to an actively managed approach for the World Carbon Fund.


If you are an institutional or accredited sophisticated investor such as a family office, please get in touch with us for more information InvestorInfo@Carbon-Cap.com

Contact us for more information on the World Carbon Fund.

Disclaimer

The contents of this website are communicated by, and the property of, Carbon Cap Management LLP. Carbon Cap Management LLP is an appointed representative of Thornbridge Investment Management LLP which is authorised and regulated by the Financial Conduct Authority (“FCA”). The information and opinions contained in this website are subject to updating and verification and may be subject to amendment. No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained in this website by Carbon Cap Management LLP or its directors. No liability is accepted by such persons for the accuracy or completeness of any information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained in this website. The information contained in this website is strictly confidential. This website is directed at persons who fall within the definition of ‘professional clients’ or ‘eligible counterparties’ as defined in the rules of the Financial Conduct Authority (“FCA”) of the United Kingdom. The value of investments and any income generated may go down as well as up and is not guaranteed. Past performance is not necessarily a guide to future performance.

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