NEWS


NANUK GLOBAL ALPHA FUND ASSIGNED A "STRONG" INVESTMENT RATING BY AUSTRALIA RATINGS


Melbourne, 27 October 2017 – Australia Ratings has assigned a ‘STRONG’ investment rating to Nanuk Global Alpha 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 Global Alpha Fund, managed by Nanuk Asset Management, is a long-short global equity fund targeting absolute returns across market cycles with low net market exposure to major global markets. These returns are expected to achieve long term capital appreciation with reduced volatily returns and risk of capital loss.

The fund invests in listed companies involved in low carbon intensity energy sources and generation including wind, solar, hydroelectricity, geothermal, biomass- to-energy, waste-to-energy and bio-fuels as well as companies involved in transitional and enabling technologies.

The Nanuk Global Alpha Fund’s investment rating summary highlights:

  • The Fund provides Australian investors with an opportunity to capture absolute returns from companies that are focused on environmental 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.
  • Recent performance has been disappointing from an absolute return perspective, but well within the parameters of its peer group (International Global Equity Market Neutral) – due to rapidly rising equity markets.
  • An investment in the Fund will benefit traditional portfolios. Besides this, the Fund should capture alpha over the long-term from the global transition to new technologies – such as electric vehicles.
  • The Fund’s diversification benefits cannot be overlooked.

Australia Ratings has also assigned its Product Complexity Indicator of ‘YELLOW’ indicating the fund as a Complex financial product. These types of funds are typically used to diversify portfolio risk or to provide superior returns to the underlying market.

A full rating report is available from www.australiaratings.com/.

FOR MORE INFORMATION CONTACT:

Daniel Liptak, Director daniel.liptak@australiaratings.com 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.

NANUK NEW WORLD FUND ASSIGNED A 'STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS


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 daniel.liptak@australiaratings.com 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.

K2 SELECT INTERNATIONAL FUND ASSIGNED 'VERY STRONG' INVESTMENT RATING BY AUSTRALIA RATINGS


Melbourne, 26 October 2017 – Australia Ratings has assigned a ‘VERY STRONG’ investment rating to K2 Select International Fund (the Fund).

A VERY STRONG investment rating indicates a very strong conviction that the fund can deliver a risk adjusted return in line with the fund’s investment 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.

The K2 Select International Fund - managed by K2 Asset Management – invests in global listed equities where growth opportunities are deemed to exist, and to rapidly reduce equity market exposure when it is believed appropriate to preserve capital. The Fund aims to provide clients with consistent, absolute returns across the investment cycle with a focus on capital protection during periods of market declines.

Australia Ratings’ 'VERY STRONG' investment rating summary highlights the following:

  • The K2 Select International fund represents a sound opportunity for Australian investors to capture global equity returns, with a demonstrable limit of downside loss.
  • The Fund is run in a multi-portfolio manner, with no portfolio manager (PM) having an overtly strong impact on the fund’s long term performance.
  • The risk-management and investment processes are firm wide constructs that are enforced efficiently, effectively and in a disciplined manner.
  • Such combined characteristics significantly reduce key-man risk, providing significant support for our rating.
  • The Fund's strong performance relative to global equities and clear diversification benefits cannot be overlooked.

In the past five years the fund’s annual performance has averaged 12.6%. During the GFC (2008-09) the fund was down by 9% to 11% versus the broader market’s fall of 30% to 36%.

Australia Ratings has also assigned its Product Complexity Indicator of ‘YELLOW’ indicating the fund as a Complex financial product. These types of funds are typically used to diversify portfolio risk or to provide superior returns to the underlying market.

A full rating report is available from www.australiaratings.com/.

FOR MORE INFORMATION CONTACT:

 

Daniel Liptak, Director daniel.liptak@australiaratings.com 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.

 

 

ARTESIAN CORPORATE BOND FUND ‘A-‘ CREDIT RATING WITHDRAWN


Melbourne, 6 October 2017 – Australia Ratings has withdrawn its ‘A-‘ credit rating to the Artesian Corporate Bond Fund (the Fund) Class A and B units.

Australia Ratings has also withdrawn its Product Complexity Indicator (PCI) of ‘BLUE’ to the Fund’s units, indicating that an investment in the Fund represents a relatively simple financial investment.

Artesian Corporate Bond Fund was established in 2017 and aims to generate a return of 2.75% above the RBA Cash Rate by investing in a diversified portfolio of floating and fixed rate Australian fixed income securities.  The units provide investors with a quarterly distribution of income.

For more information contact:

Chris Dalton, Managing Director
chris.dalton@australiaratings.com
0403 584 600
03 8080 6684

About Australia Ratings

Australia Ratings is Australia’s local credit rating agency with over 55 years of experience in assessing and rating credit risk. Australia Ratings was formed in 2010 following regulatory reforms to the operation of credit rating agencies in Australia. Australia Ratings Pty Limited holds Australia Financial Services License No. 346138.

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.


 

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