Navigate Climate Volatility Opportunities Fund

Uncertainty into Opportunity

Climate Volatility Opportunities

An Article 8 SFDR fund that does not bet on the direction of the climate. It invests in the listed equities whose pricing power, cash flows and competitive moats strengthen in a world of rising climate variance — the bottleneck monopolists of the energy transition, the insurance and reinsurance complex that prices weather directly, the exchanges and registries that have become the toll-collectors of climate finance, and a deliberate allocation to tail-risk optionality.

The fund’s thesis: whether the transition succeeds or stumbles, climate variance is rising. Variance, properly intermediated, is a yield.

80 - 100%

20 %

GLOBAL EQUITY EXPOSURE

CLIMATE-RELATED THEMES

2 - 3%

TARGET DISTRIBUTION YIELD

5/7

SYNTHETIC RISK & REWARD

Fund Highlights

1 Variance, not direction

The Fund captures returns from rising climate variance regardless of whether the energy transition succeeds, stumbles or arrives unevenly. The trade compounds across all four QuadLogic regimes.

2 A concentrated, high-conviction portfolio

Approximately 30 active holdings drawn from a universe of 92 listed equities organised into three concentric rings of conviction: bottleneck monopolists at the core, thematic backbone in the middle, tail-risk optionality on the edge.

3 Surgical Article 8 SFDR exposure

Three-layer sustainability screen: binding exclusions, sustainable investment classification, principal adverse impact monitoring. 70% minimum Sustainable Investment commitment.

4 Proprietary process

The Bottleneck Quality Score (BQS) — a five-pillar fundamental scoring engine — overlaid with the QuadLogic macro regime framework. Rebalanced when the regime changes, not when the calendar tells it to.

*Target income is an objective, not a guarantee. The Fund is subject to final MFSA approval. Past performance, whether actual or simulated, is not a reliable indicator of future performance.

Investment Highlights

All-Weather Construction: Thirty-one themes deliberately constructed so that the portfolio holds favoured exposure in each of the four QuadLogic regimes. Pricing power somewhere in the portfolio in every macro environment.
Structural Tailwinds: Munich Re’s loss database now records insured catastrophe losses averaging $143bn a year — roughly four times the inflation-adjusted average of the 1990s. The trend line is steepening, not mean-reverting.
Bottleneck Pricing Power: Ring 1 holdings sit at the narrowest pinch points of the energy transition: grain-oriented electrical steel, transformers, switchgear, water utilities, critical minerals. Pricing power is non-linear in supply disruption.
Policy-Resilient Demand: Climate adaptation spend is largely non-discretionary. The investment case strengthens — rather than weakens — if the political consensus on net zero falters.

Investment Philosophy

Climate is becoming a financial instrument. Insurance-linked securities, catastrophe bond issuance, voluntary and compliance carbon markets, weather derivatives — the institutional plumbing for monetising climate variance is in place. The toll-collectors of these markets are unusually high-quality businesses.
Adaptation eats mitigation as the investable trade. The conventional climate trade is mitigation — solar, wind, EVs, the named winners of net zero. The durable investable trade is increasingly adaptation: water, cooling, grid hardening, coastal defence, insurance and the bottleneck inputs that feed all of them.
The bottleneck inside the bottleneck. AI data centre capex is now running at $660–$690bn annually; every dollar of compute requires transmission upgrades. Transformers are on 2–4 year lead times. Inside the transformer is grain-oriented electrical steel; inside that is an on-load tap-changer. Identify enough of these bottlenecks and you have a portfolio.
Long-term value creation from quality compounding through variance. The portfolio holds high-quality businesses whose pricing power, returns on capital and free-cash-flow profiles improve in a world of rising climate variance.

Portfolio Companies

Specific companies referenced below are illustrative examples of the types of business the Fund would hold; named only to explain the investment thesis. Actual portfolio holdings may differ and may change without notice.

Agricultural bottleneck monopolists (CF Industries, Mosaic, Nutrien, Corteva, Deere, AGCO): Fertiliser producers operating in a five-country oligopoly; precision-agriculture platforms with recurring software revenue. New nitrogen and phosphate capacity costs $8bn and takes seven years to permit — supply is structurally inelastic.
Soft-commodity toll-collectors (Archer-Daniels-Midland, Bunge, Glencore, Wilmar, Tyson Foods, JBS): The food system’s processors, wholesalers and protein producers. Pricing power compounds in disrupted-harvest years; vertically integrated franchises pass through input cost rises.
Listed proxies for irreplaceable productive land (SLC Agrícola, Adecoagro, Weyerhaeuser, Bakkafrost, Mowi): Brazilian cerrado farmland operators trading at 28-40% discounts to private-market appraised value; concession-monopoly salmon producers in cold-water jurisdictions; timberland with structural demand from construction and carbon markets.
Grid and infrastructure bottlenecks (Eaton, Prysmian, Hitachi Energy, Schneider Electric, GE Vernova, Trane Technologies, American Water, Veolia): Transformers, switchgear and cables on multi-year lead times with structurally rising demand from AI and renewables; non-discretionary water and HVAC franchises that compound through inflationary regimes.
Climate risk transfer and finance plumbing (Munich Re, Swiss Re, RenaissanceRe, Hannover Re, Intercontinental Exchange, CME Group, SGS, Bureau Veritas, Intertek): The hardening reinsurance cycle has lengthened into something resembling a regime; the exchanges and verifiers have become the toll-collectors of climate finance.

Reasons to Invest

Long the Variance: Returns compound from climate variance itself, not from any directional bet on the transition’s outcome.
All-Weather Themes: Thirty-one themes constructed so that each of the four QuadLogic regimes has its own viable allocation — the portfolio never finds itself with nowhere credible to put capital.
Bottleneck Pricing Power: Ring 1 monopolists receive a deliberate weight bonus; pricing power is non-linear in supply disruption.
Inflation Resilience: Hard-asset and infrastructure exposure with pricing-power characteristics historically perform well in inflationary regimes.
Article 8 SFDR Classification: Formal sustainable investment classification with a 70% minimum Sustainable Investment commitment, cross-referenced to a published Responsible Investment Policy.

Important Information: Capital at Risk. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. The Fund is subject to final MFSA approval. The Fund concentrates exposure on climate-related themes and may be more volatile than a more broadly diversified equity fund. Past performance, whether actual or simulated, is not a reliable indicator of future performance. Currency exchange rate changes may cause the value of overseas investments to rise or fall. The use of derivatives for currency hedging may pose a risk of contagion to other share classes. Specific companies referenced are used illustratively to explain the investment thesis and do not constitute investment advice. Holdings may change without notice.

Climate-Variance Investment Playbook

How The Fund Works

The Fund identifies the consequential investing trends arising from a climate system that is becoming more volatile — and the companies positioned to profit not from any particular climate outcome, but from the variance itself. It does not own a directional view on the energy transition. It targets firms whose pricing power, cash flows and competitive moats strengthen in a world of rising climate variance, across the five thematic families that span the universe: climate infrastructure, climate risk transfer, climate finance plumbing, bottleneck inputs, and tail-risk optionality.

Insured catastrophe losses average $143bn per year. Wind generation varies 5–15% year-on-year. Reinsurance pricing cycles are lengthening into regimes. Soft commodities — cocoa, coffee, orange juice — each set fresh all-time highs in the last 24 months. These are not forecasts; they are conditions already present in the data. The investable trade is not the direction of the climate, but the rising variance around it.

Investment Process

Step 1: Identify defining transition themes

31 themes covering every distinct, investable expression of climate volatility.

Step 2: Universe Construction

92 listed equities organised in three rings of conviction.

Step 3: BQS Scoring

Proprietary five-pillar fundamental scoring engine.

Step 4: QuadLogic Regime

Identification of prevailing macro regime: Q1 Goldilocks, Q2 Reflation, Q3 Tougher Times, Q4 Bear Market.

Step 5: Quad-Adjusted BQS

Theme-Quad affinities convert into multipliers on Base BQS.

Step 6: Article 8 ESG Screen

Three-layer SFDR screen applied at issuer level.

Step 7: Regime-Event Rebalance

Portfolio repositioned when regime changes — not on the calendar.

Research Providers

Navigate's Proprietary Research Stack

The CVO Fund draws on Navigate Portfolio Advisers’ proprietary research infrastructure across the climate-volatility universe: the Master Universe Workbook, the Bottleneck Quality Score engine, the QuadLogic macro framework and Navigate’s house ESG screening methodology. The research process is supplemented by selected third-party providers across climate science, reinsurance loss databases, carbon-market analytics and energy-transition technology.

Where third-party research is used to inform thematic positioning, it is integrated with Navigate’s own framework rather than relied upon in isolation. The investment team operates from Navigate’s five-office footprint across the United Kingdom, United Arab Emirates, Switzerland, Malta and the Cayman Islands.

The Opportunity Set: Climate Variance as an Investable Universe

1. Agriculture & Soft Commodities — ~50% NAV

Seven sub-themes spanning fertilisers, agricultural machinery, soft-commodity processors and wholesalers, protein producers, agricultural landholders and aquaculture — the structural beneficiaries of yield volatility under climate variance.
The fertiliser complex is a five-country oligopoly; new mines cost $8bn and take seven years to permit. Soft-commodity toll-collectors (ADM, Bunge, Glencore, Wilmar) collect pricing power asymmetrically in disrupted-harvest years.
Listed farmland proxies (SLC Agrícola, Adecoagro, Weyerhaeuser) trade at 28-40% discount to private-market appraised value. Aquaculture (Mowi, Bakkafrost) offers concession-protected climate-resilient protein with structural Asian demand growth.

2. Climate Risk Transfer — ~15% NAV

Insurance and reinsurance majors, catastrophe bond issuers, volatility exchanges and carbon-market verifiers; $143bn average annual insured catastrophe losses and rising.
Cat bond issuance reached $17.7bn in 2024 with outstanding capital above $48bn — the institutionalisation of climate-variance markets is well underway. Hardening reinsurance pricing has lengthened into something resembling a regime.
The carbon-verification monopolists (SGS, Bureau Veritas, Intertek) earn recurring revenue from the regulatory machinery of climate accounting. Voluntary carbon markets projected at $50bn by 2030.

3. Climate Infrastructure — ~20% NAV

Grid hardening, water security, cooling and HVAC, coastal defence — the picks-and-shovels of climate adaptation.
The IEA estimates network investment must nearly double this decade; transformers globally on 2–4 year lead times, sold-out at 98% capacity utilisation.
Adaptation spending is non-discretionary and politically resilient — the investment case strengthens, not weakens, if the policy consensus on net zero falters.

4. Tail-Risk Optionality — ~15% NAV

Critical minerals (copper, rare earths), photonics, quantum sensing, climate AI and software, climate-aligned semiconductors, cyber-physical security for critical infrastructure.
Cleveland-Cliffs is the sole American producer of grain-oriented electrical steel — the bottleneck inside the bottleneck. AI capex of $660–690bn annually has accelerated the bottleneck thesis by perhaps a decade.
Cyber-physical security (Palo Alto Networks, Fortinet) is the only sub-family the workbook flags as favoured across all four regimes — the durable core.

How we are turning climate volatility into compounding returns

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ESG Profile

Article 8 SFDR · 70% Minimum Sustainable Investment Commitment

The Fund is classified as Article 8 SFDR with a minimum 70% commitment to Sustainable Investments as defined in Article 2(17) of the Regulation. The Fund applies Navigate’s house-level Responsible Investment Policy, a three-layer screen comprising binding exclusions, sustainable investment classification (contribution + DNSH + good governance) and ongoing principal adverse impact (PAI) monitoring at portfolio level.

The illustrative ESG Rating Distribution chart shows the MSCI ESG Rating breakdown across the Fund’s universe versus the MSCI ACWI benchmark. Final ratings will be confirmed once portfolio holdings are launched; chart is illustrative.

The chart shows the MSCI ESG Rating Distribution based on the Fund’s universe and benchmark holdings. Issuer MSCI ESG ratings are mapped directly to the numerical Bloomberg ESG Quality Score. Some asset types are out of scope for MSCI’s ESG analysis (e.g. cash). These are excluded from coverage calculations and reflected under ‘Not Rated’.

ESG Integration Exclusions Policy Details

The Fund operates under Navigate’s house-level Responsible Investment Policy, with a CVO-specific Schedule. The exclusion thresholds below apply to all Article 8 SFDR funds in the Navigate range. Mining of critical transition minerals, defence and cyber-physical security, and industrial gases with material transition revenue are explicitly not subject to blanket exclusions, as set out in the Policy.

Climate Based Exclusions

Thermal Coal Extraction (>5% revenue)
Thermal Coal Power Generation (>10% revenue)
Unconventional Oil & Gas (>5% revenue)
Conventional Oil & Gas E&P (>10% revenue)
Transition exception for power generation up to 30% subject to credible coal phase-out plan

Conduct-Based Exclusions

Controversial Weapons (0% threshold)
Conventional Weapons (>10% revenue)
Tobacco Production (>5% revenue)
Alcohol Production (>5% revenue)
Adult Entertainment (>5% revenue)
Gambling (>5% revenue)
Severe UN Global Compact violations

Responsible Investment Approach

SFDR Article 8 classification
70% minimum Sustainable Investment commitment
Three-layer ESG screen (Exclusions + SI Classification + PAI)
Engagement on decarbonisation, water, biodiversity, board diversity
Active proxy voting
House-level Responsible Investment Policy
Cross-referenced to CVO Schedule A

Distribution History

Distribution history will be populated quarterly following the first distribution payment after Fund launch. The Fund targets a quarterly distribution with an annual distribution yield objective of 2–3% (objective, not guaranteed).

Fund Name	Dividend Frequency	Distribution Yield	Announcement Date	Ex Date	Record Date	Payment Date

Distribution history will appear here following the first distribution payment after Fund launch.

Fund Name	Dividend Frequency	Distribution Yield	Announcement Date	Ex Date	Record Date	Payment Date
Navigate Climate Volatility Opportunities Fund	Quarterly	1.50%	05/11/2021	05/11/2021	05/11/2021	05/11/2021
Navigate Climate Volatility Opportunities Fund	Quarterly	0.89%	28/01/2022	28/01/2022	28/01/2022	28/01/2022
Navigate Climate Volatility Opportunities Fund	Quarterly	1.25%	08/04/2022	08/04/2022	08/04/2022	08/04/2022
Navigate Climate Volatility Opportunities Fund	Quarterly	1.50%	01/07/2022	01/07/2022	01/07/2022	01/07/2022
Navigate Climate Volatility Opportunities Fund	Quarterly	1.50%	30/09/2022	30/09/2022	30/09/2022	30/09/2022
Navigate Climate Volatility Opportunities Fund	Quarterly	1.50%	31/12/2022	31/12/2022	31/12/2022	31/12/2022
Navigate Climate Volatility Opportunities Fund	Quarterly	1.50%	31/03/2023	31/03/2023	31/03/2023	31/03/2023

Share Class Information

Share class identifiers (ISIN) are pending and will be confirmed upon final MFSA approval. Annual Management Charges and minimum investment thresholds are indicative and subject to confirmation.

Fund Name

Share Class

ISIN

Currency

AMC

Minimum Investment