Ninepoint Web3 Innovators Fund’s investment objectives are to seek to provide Unitholders with capital appreciation by investing in a diversified portfolio comprised primarily of equity and equity-related securities of companies that give investors exposure to emerging technologies such as Web3, the blockchain and digital asset-enabled internet (“Web3”).
Effective May 31, 2023 the investment objective and name of Ninepoint Bitcoin ETF was changed to Ninepoint Web3 Innovators Fund. The following is the performance for the Ninepoint Bitcoin ETF to May 31, 2023 and that of Ninepoint Web3 Innovators Fund after that date:
|1 YR %
|3 YR %
|5 YR %
|10 YR %
|Cash And Cash Equivalents
|Ci Galaxy Bitcoin Etf
|Ci Galaxy Ethereum Etf (USD)
|Coinbase Global Inc
|Galaxy Digital Holdings Ltd
|Marathon Digital Holdings Inc
|Paypal Holdings Inc
In the energy transition economy, many believe setting a price on carbon, and allowing that price to rise, is one of the best ways to encourage polluters to limit emissions and drive innovation in green technology.
According to the European Commission, companies covered by the European Union Emission Trading System (ETS) reduced emissions by about 35% between 2005 and 2019. In the United States, California launched its own ETS in 2013, and have since reduced emissions from sources covered by the ETS by 10% from 2013 to 2018.
In an emissions trading system - sometimes referred to as a cap-and-trade system, a regulator or government-entity sets a policy objective to reduce emissions in their region and sets a cap on total emissions allowable. Within an emissions trading system, the regulator splits the cap into carbon allowances or credits. A company regulated under the emission trading system can acquire carbon credits from the regulator, purchase through secondary markets, or reduce its emissions.
After each compliance period, regulated companies must surrender enough carbon credits to cover its emissions, or be heavily fined. Each year the regulator reduces the total number of allowances available, thereby achieving lower emissions targets.
A carbon credit is a permit allowing the holder to emit carbon dioxide or other greenhouse gases. One carbon credit represents one ton of CO2.
Source: Ministère de l’Environnement et de la Lutte contre les changements climatiques.
According to financial market data provider Refinitiv, the total value of global carbon market reached US$851 billion in 2021.1 Energy consulting firm Wood Mackenzie estimates that the global emissions trading market could be worth as much as $22 trillion by 2050.2
ETS systems are operating in 38 countries covering over 40% of global GDP. Some of the largest ETSs globally include:
• EU ETS
• US Eastern
•United Kingdom (UKA)
1 Refinitiv, “Carbon Market Year in Review 2021”.
2 Wood Mackenzie, “COP26: Make or Break for Global Emissions Trading”.
|Series ETF *
|Series ETF $USD *
*Exchange: Toronto Stock Exchange (TSX)
|January 27, 2021
|Registered Tax Plan Status
Series ETF: 0.70%
|Toronto Stock Exchange (TSX)
All returns and fund details are a) based on ETF shares; b) net of fees; c) annualized if period is greater than one year; d) as at January 31, 2024. Top ten holdings and sector allocation as at January 31, 2024. Top ten holdings based on % of net asset value. Sector allocation based on % of net asset value. Numbers may not add up due to rounding. Cash and cash equivalents include nonportfolio assets and/or liabilities.
The Ninepoint Web3 Innovators Fund is generally exposed to the following risks. See the simplified prospectus of the Fund for a description of these risks: No Assurance in Achieving Investment Objectives; Loss of Investment; Active Management Risk; Concentration Risk; Asset Class Risk; Blockchain Risk; Cryptocurrency Risk; Disruptive Innovation Risk; Emerging Technologies Risk; Communication Services Companies Risk; Information Technology Companies Risk; Liquidity Risk; Equity Securities Risk; General Risks of Foreign Investments; Trading Price of ETF Units; Cease Trading of Securities Held by Ninepoint Web3 Innovators Fund; Small Company Risk; Specific Issuer Risk; Trading Price of Underlying Funds Risk; Derivative Instrument Risk; Securities Lending Risk; Reliance on the Manager; Manager and Custodian Standard of Care; Potential Conflicts of Interest; Valuation of Ninepoint Web3 Innovators Fund; Currency Risk; U.S. Currency Exposure; Substantial Securityholder Risk; No Ownership Interest in the Portfolio; Changes in Legislation; Inflation Risk; Not a Trust Company; Cyber Security Risk; COVID-19 Outbreak; Tax Risks.
Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rate of return for Series ETF CAD shares of the Fund for the period ended December 31, 2023 is based on the historical annual compounded total return including changes in share value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.
Ninepoint Partners LP: Toll Free: 1.866.299.9906. DEALER SERVICES: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540
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