Saturday, October 28, 2017

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


Daniel Liptak, Director 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

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.



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