Climate Volatility Opportunitie – Aria Navigate Funds

Uncertainty into Opportunity

Climate Volatility Opportunities

Feeding the world is becoming harder as climate stress reshapes the supply of food and raw materials. This Article Fund invests in the owners and producers of vital soft commodities — wheat, sugar, cotton, soybeans, cattle, and farmland — whose pricing power strengthens when extreme weather disrupts supply. By harnessing the volatility created by a changing climate, the strategy seeks to turn global agricultural uncertainty into a source of resilient returns and income.

20 %

GLOBAL EQUITY EXPOSURE

SEPARATE SOFT COMMODITY EXPOSURES

4.75 %

TARGET INCOME *

SYNTHETIC RISK & REWARD

Fund Highlights

1

Gains exposure to climate volatility as a theme, and generates potentially positive returns from increasingly variable weather patterns.

2

A concentrated portfolio of well researched, high conviction ideas advised by highly credentialled sector specific team.

3

Portfolio Yield: Annualised distributions circa 5% plus.

4

Provides surgical exposure to sustainable Article 8 agriculture themes

*These figures are based on the back-tested AlphaPredictor® model performance vs the funds benchmark. Past Performance of any kind, actual or simulated, is not a reliable indicator of future performance.

Investment Highlights

Diversification: Exposure across wheat, sugar, soybeans, cotton, cattle and farmland reduces reliance on a single commodity cycle.
Structural Growth: Rising demand for renewable fuels (bioethanol, SAF, biodiesel) anchors demand for sugar, corn and oilseeds.
Pricing Power: Climate volatility amplifies supply shocks, benefiting well-positioned producers with scale and logistics.
Policy Tailwinds: Blending mandates, subsidies, and renewable energy directives (EU RED II, India’s ethanol program, US RFS) create predictable demand growth.

Investment Philosophy

Climate change is disrupting agricultural cycles, creating scarcity and pricing power for producers of vital soft commodities.
Food producers and farmland owners increasingly form part of the energy transition, as crops double as feedstock for biofuels, biomass and renewable energy.
We target companies and assets positioned at the intersection of food security and energy security.
Long-term value creation comes from exposure to inflation-linked, climate-resilient real assets with dual demand drivers.

Portfolio Companies

Agribusiness processors (ADM, Bunge, Nutrien, Corteva): Benefit from rising crop prices and weather volatility; some actively engaged in renewable biofuel ingredients.
Farmland REITs (Gladstone Land, Farmland Partners): Own hard agricultural assets, benefitting from land value appreciation and dual demand from food and energy transitions.
Agri-protein producers (JBS, Olam): Move across food and feed sectors, increasingly investing in sustainable practices and supply chain transparency.
Biofuel innovators (Verbio, Gevo): Directly link soft commodities to the energy transition by transforming crop feedstocks into low-carbon fuels.

Reasons to Invest

Climate Resilience: Benefit from commodities that gain value under climate stress and supply disruptions.
Dual Demand Drivers: Capture upside from both food security and energy transition trends.
Inflation Hedge: Agricultural assets historically outperform during inflationary cycles.
ESG Alignment: Exposure to low-carbon fuels, sustainable agriculture, and carbon credit monetisation.
Hard Asset Backing: Invest in real, productive assets with intrinsic and enduring value.

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 value of your investment and the income from it will vary and your initial investment amount is not guaranteed. Some or all of the Manager’s annual charge for the Fund is taken from capital rather than from income. This increases the income, but reduces the potential for capital growth. Two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to repay the principal and make interest payments. In the event of default, the value of your investment may reduce. Economic conditions and interest rate levels may also impact significantly the values of high yield bonds. All currency hedged share classes of this fund use derivatives to hedge currency risk. The use of derivatives for a share class could pose a potential risk of contagion (also known as spill-over) to other share classes in the fund. The fund’s management company will ensure appropriate procedures are in place to minimise contagion risk to other share class. Using the drop down box directly below the name of the fund, you can view a list of all share classes in the fund – currency hedged share classes are indicated by the word “Hedged” in the name of the share class. In addition, a full list of all currency hedged share classes is available on request from the fund’s management company.

Commodity-Driven Investment Playbook

How The Fund Works

Investment Process

Step 1

Identify defining transition themes

Step 2

Define Global Universe

Step 3

Apply Exclusion Policies

Step 4

Determine industry carbon cost curves

Step 5

Company Analysis

Step 6

Portfolio Construction

Step 7

Calculate Scope 1 and 2 portfolio emissions

Research Providers

Rob West is the CEO of Thunder Said Energy, an independent research consultancy uniquely focussed on the energy transition. Founded in 2019, Thunder Said Energy’s research examines different energy technologies, their economics, their technical challenges, and companies that can drive decarbonisation.

Thundersaid Energy provides deeply researched insights and opportunities, providing a rich universe of ideas for further investigation and potential inclusion in the ARIA Global Impact Income Fund. Prior Thunder Said Energy, Rob was the Head of Global Energy Research at Redburn.

The Opportunity Set: Soft Commodities in the Energy Transition

1. Biomass and Biofuels

Agricultural residues (corn stover, wheat straw, rice husks, bagasse from sugarcane) are increasingly being diverted into biomass power plants and biofuel production.
India is spearheading this trend by turning its sugarcane belt into a “green energy belt”, channelling surplus cane and bagasse into ethanol and biomass for electricity.
For investors, this means producers with access to surplus feedstock are positioned to benefit from premium pricing and government blending mandates.

2. Renewable Feedstock Demand

Rising demand for sustainable aviation fuel (SAF), biodiesel and renewable diesel requires a growing volume of oilseeds (soybean, rapeseed), sugar crops, and starches.
Food producers who can scale into dual-use supply chains (food + fuel) capture an expanded market and structural demand growth.

3. Climate Volatility as a Pricing Power Driver

Extreme weather is disrupting harvests more frequently. Producers with scale, diversified geographies, and storage/logistics control benefit disproportionately, as tight supply drives higher commodity prices.
Farmland and vertically integrated producers become natural hedges against inflation and climate risk.

4. Carbon Credits and Co-Products

Waste streams from agriculture (e.g., methane from livestock, husks from crops) can be monetised through carbon credit schemes, adding an additional revenue stream.
The carbon cost curve favours producers who can demonstrate lower emissions intensity across their operations, giving them access to premium buyers.

5. Geopolitical and Policy Tailwinds

Governments are re-shaping agricultural markets by tying food security and energy security together (EU RED II, US Renewable Fuel Standard, India’s ethanol blending mandates).
Policy alignment provides predictable demand growth and subsidies for producers at the intersection of food and fuel.

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ESG Profile

ESG Rating Distribution

The chart shows the MSCI ESG Rating Distribution based on the fund’s and benchmark’s underlying holdings. Issuer MSCI ESG ratings are mapped directly to the numerical Bloomberg ESG Quality Score. The chart includes an ESG Rating distribution of all fund’s and benchmark’s holdings. Some asset types are out of scope for MSCI’s ESG analysis, e.g. Cash. They are removed from a fund’s or benchmark’s holdings prior to calculating both the ESG Coverage (%) and ESG analysis but are reflected above under ‘Not Rated’.

The sustainability scores of the fund and the benchmark are shown. The benchmark is the MSCI AC World (Net TR).

ESG Integration Exclusions Policy Details

Climate Based Exclusions

Thermal Coal Extraction
Thermal Coal Power Generation
Unconventional Oil and Gas
Tobacco Production
Chemicals of Concern

Non Climate Based Exclusions Norms Based*

Tobacco Production
Severe violations of the UN Global Compact Status *
Recreational Cannabis
Military Contracting
Recreational Cannabis
Adult Entertainment
Controversial Weapons
Gambling
Alcohol

Responsible Investment Approach

ESG Integration Policy
Negative Screen / Positive Allocation
Sustainable Investments
Impact Fund
Engagement
Voting

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Distribution History Table

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

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Share Class Information

Fund Name

Share Class

ISIN

Currency

AMC

Minimum Investment