Melbourne, 27 October 2017 – Australia Ratings has assigned a ‘STRONG’
investment rating to Nanuk New World Fund (the Fund).
A STRONG investment rating indicates a strong conviction that the fund can deliver a risk
adjusted return in line with manager’s objective; based on an investment rating scale used by Australia Ratings to indicate how well we believe a fund
will perform against a range of risks.
Nanuk New World Fund, managed by Nanuk Asset Management - targets investment returns that exceed clients’ return and risk expectations over the longer
term, with a view of outperforming its benchmark - FTSE EOAS index - net of fees.
The Fund invests in global companies involved in industries such as clean energy, energy efficiency, agriculture, water, waste management, recycling, pollution
control and advanced manufacturing and materials; as well as those involved in transitional and enabling technologies.
The Nanuk New World Fund’s investment rating summary highlights:
- The Fund enables Australian investors to capture returns from companies that are contributing towards greater environmental sustainability and resource efficiency.
- The Fund is run by a team of motivated portfolio managers with a strong input from an experienced board.
- The investment philosophy, investment strategy, risk management and operational elements are well thought out and executed in a disciplined manner.
- The diversification benefits and additional returns of the fund cannot be overlooked.
- An investment in the Fund will benefit traditional portfolios; and the Fund should benefit over the long term from the global transition to new technologies – such as electric vehicles.
- Investors could allocate to the Fund from their international equities portfolio.
- The currency exposure of the fund is usually unhedged and as such could create additional short term return volatility
- Australia Ratings notes that the Investment Manager currently has A$42 million across two funds and therefore long-term success will hinge on the success of raising capital for both funds.
The Fund’s benchmark, the FTSE EOAS, has appreciably outperformed traditional global equity benchmarks for more than 15 years – clear evidence of the added value gained from investing in environmentally focused versus traditional listed global equities.
Australia Ratings has also assigned its Product Complexity Indicator of ‘BLUE’ indicating the fund as a 'Relatively Simple' financial product. These types of funds are still typically expected to move fairly closely in line with mainstream markets, however there may be periods where they outperform or underperform the benchmark index.
A full rating report is available from www.australiaratings.com/.
FOR MORE INFORMATION CONTACT:
Daniel Liptak, Director firstname.lastname@example.org 03 8080 6684
About Australia Ratings’ Investment Rating
Our investment rating reflects Australia Ratings’ current opinion of a fund’s or an investment’s ability to achieve its stated investment objectives in the near term. The rating expresses a view on the expected consistency of the fund’s or investment’s performance within its peer or style group and on the fund manager’s ability to produce superior performance amongst its peers in the near term with due regard to the medium-term consensus view of the asset class to which the product is benchmarked.
A five-point scale is used to differentiate our opinion on how well we believe a fund will perform against a range of risks.
About the Product Complexity Indicator
Our proprietary colour-coded product complexity indicator (PCI) highlights the complexity level of an investment by its terms and conditions’ structure and transparency that may affect an investor’s return.
ABOUT AUSTRALIA RATINGS
Australia Ratings is a local, independent rating agency that provides timely and credible ratings information and research to the broader investment community. As an ASIC-licensed rating agency, we provide general advice by issuing credit ratings on debt securities and companies; and fund ratings on Australian managed funds. We are Australia’s only agency that holds a retail Australian Financial Services Licence (AFSL). This enables both retail and wholesale investors to use our credit ratings to help them gauge credit risk and complexity of financial products sold in the Australian market.
Rating opinions of Australia Ratings are determined by its analytical team in accordance with its rating methodology. The Board of Australia Ratings whose members include Jarrod Brown, Chris Dalton and Mike Dontschuk oversee the application of Australia ratings rating methodology and the integrity of the rating process.