The fund is actively managed to provide exposure to three carbon allowance markets, namely the European Union Allowance (EUA), the California Carbon Allowance (CCA), and the Regional Greenhouse Gas Initiative (RGGI). The EUA is the oldest and most liquid carbon allowance market in the world. The CCA covers Quebec aside from California, while the RGGI is a cooperative of Northeastern and Mid-Atlantic states in the US. Each market uses a cap-and-trade system, where emissions trading is regulated to reduce greenhouse gas emissions through economic incentives. The funds aggregate exposure must not exceed 300% of its net asset value, calculated on a daily basis. The fund may hold debt securities, cash, or cash equivalents. It may also engage in lending and repurchase transactions to generate additional income. Derivatives such as options, futures, forwards, and swaps may be utilized for hedging strategies. All investment decisions are at the discretion of the fund manager.