Ninepoint Web3 Innovators Fund
Web3 Focused
A convenient way to gain diversified exposure to Web3 innovation and digital assets.
Exposure to Enterprise Adoption of Web3
Invest in leading companies harnessing Web3 and related technologies to transform their industry or business.
Digital Asset Exposure, Including Bitcoin
Own Bitcoin indirectly via listed Canadian cryptocurrency ETFs, plus gain high exposure to Bitcoin from publicly listed companies operating entirely in the digital asset world.
Experienced Alternative Asset Manager
Benefit from Ninepoint's long and successful track record of launching exchange-traded investment products that provide investors with exposure to novel or emerging asset classes and industries.
Sector Allocation as of 03/28/2024
| Sector | Weight |
|---|---|
| Financials | 43.95 |
| Crypto Etfs | 29.02 |
| Information Technology | 22.04 |
| Consumer Discretionary | 4.16 |
| Communication | 1.45 |
| Cash And Cash Equivalents | -0.61 |
Geographic Allocation as of 03/28/2024
| Sector | Weight |
|---|---|
| United States | 58.6 |
| Canada | 42.01 |
Top Ten Holdings as of 03/28/2024
| Issuer Name |
|---|
| Advanced Micro Devices Inc |
| Block Inc |
| Ci Galaxy Bitcoin Etf |
| Ci Galaxy Ethereum Etf (USD) |
| Coinbase Global Inc |
| Galaxy Digital Holdings Ltd |
| Microsoft Corporation |
| Nvidia Corporation |
| Paypal Holdings Inc |
| Shopify Inc |
An Emerging Asset Class
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.
Emissions Trading Systems (ETS) and Carbon Credits
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.
What is a Carbon Credit?
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.
A unique investment opportunity
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
• California/Quebec
• US Eastern
•United Kingdom (UKA)
1 Refinitiv, “Carbon Market Year in Review 2021”.
2 Wood Mackenzie, “COP26: Make or Break for Global Emissions Trading”.
Investment Team
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Regulatory Documents
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Ticker & Fund Codes
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Fund Details
Fund Type Digital Assets Inception Date January 27, 2021 Registered Tax Plan Status Eligible Management Fee Series ETF: 0.70%
Performance Fee None Redemptions Daily Valuations Daily CUSIP TKN/TKN.U: 65445B101 Exchange 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 March 31, 2024. Top ten holdings and sector allocation as at March 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 March 31, 2024 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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Are You An Accredited Investor?
An investment in this Fund requires the financial ability and willingness to accept the high risks and lack of liquidity inherent in this type of an investment. Investors in the Fund must be prepared to bear such risks for an extended period of time and should review suitability with their Investment Advisor.
The minimum subscription amount is $150,000.00 in all jurisdictions, unless you meet the definition of "accredited investor" under National Instrument 45-106 Prospectus and Registration Exemptions.
If you meet the definition "accredited investor" (see below), you may invest a minimum of $25,000. Please consult the Offering Memorandum to determine your qualification status. Investment Advisors should consult their company's internal policies.
The Subscriber, or one or more beneficial purchasers for whom the Subscriber is acting, is (i) a resident of, or the purchase and sale of securities to the Subscriber is otherwise subject to the securities legislation of one of the following: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, North West Territories, or Nunavut, and the Subscriber is (and will at the time of acceptance of the Subscription be) an accredited investor within the meaning of National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106") because the Subscriber is one of the following:
| (a) | a Canadian financial institution, or a Schedule III bank; |
| (b) | the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada); |
| (c) | a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary; |
| (d) | a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador); |
| (e) | an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d); |
| (f) | the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada; |
| (g) | a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec; |
| (h) | any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government; |
| (i) | a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada; |
| (j) | an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000; |
| (k) | an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; (Note: If individual accredited investors wish to purchase through wholly-owned holding companies or similar entities, such purchasing entities must qualify under section (t) below, which must be initialled.) |
| (l) | an individual who, either alone or with a spouse, has net assets of at least $5,000,000; |
| (m) | a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements; |
| (n) | an investment fund that distributes or has distributed its securities only to:
|
| (o) | an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt; |
| (p) | a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be; |
| (q) | a person acting on behalf of a fully managed account managed by that person, if that person:
|
| (r) | a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded; |
| (s) | an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function; |
| (t) | a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors; |
| (u) | an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, or; |
| (v) | a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor. |
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