The Nanuk New World Fund is a responsible, sustainably themed, ESG and ethically aware fund which allows investors to access to a well-diversified portfolio of listed global companies whose business activities and practices benefit from, or contribute to, greater global environmental sustainability and resource efficiency. The Fund seeks to provide investment returns which exceed the Fund’s benchmark and outperform traditional / mainstream global equity benchmarks over the long term. The Fund employs both positive screening and negative screening. ESG factors are integrated into the decision-making process in a pragmatic holistic manner. The Fund excludes more than 1800 companies from the total global equity universe, being companies whose practices contravene environmental, social and ethical norms and which do not contribute to greater environmental sustainability or resource efficiency.
Responsible & Sustainable Investing. The Nanuk New World Fund employs a “core” sustainable investment strategy which seeks to achieve a combination of financial and non-financial outcomes - specifically, by providing sound risk-adjusted financial returns which are aligned with Nanuk's responsible, social and ethical values. The Fund utilises positive, negative and norms-based screening, integrates ESG factors into the decision-making process and is aligned with the "basic needs" that underpin the UN's Sustainable Development Goals.
Fund Objective. The long-term objective of the Fund is to outperform traditional global equity performance benchmarks such as the MSCI ACWI.
Positive Screening. The universe is defined around 8 broad sectors: 1) Clean Energy, 2) Energy Efficiency, 3) Industrial Efficiency, 4) Waste & Pollution, 5) Food & Agriculture, 6) Advanced & Sustainable Materials, 7) Water and 8) Healthcare Technology. To be included in Nanuk’s investable universe and portfolios, companies must derive at least 25% of their value from activities.
Negative Screening. Company exclusions are formalised around around three main areas: 1) Climate Change, Fossil Fuels & Environment, 2) Weapons, and 3) Ethical Values & Human Rights. Nanuk does not invest in many companies with a material proportion of their primary business activities in the following areas:
- Nuclear Weapons, Anti-Personnel Landmines & Cluster Munitions, Military Contracting & Equipment, Weapons & Small Arms.
- Tobacco, Alcohol, Gambling, Adult Entertainment, Uranium Mining and Refining
- Coal & Coal-Based Energy - Mining, Exploration & Extraction >0%, Coal-Fired Generation >10%, Services & Equipment Supply >30%.
- Oil & Gas - Exploration, Extraction, Production & Refining >0%, Services & Equipment Supply >30%, Oil-Fired Generation >5%, Gas Generation >30% or if Gas > Renewables.
Norms-based. Nanuk does not invest in many companies whose business practices are known to contravene international norms associate with human rights, labour standards, anti-corruption and severe environmental damage.
Sustainable Development. The Fund contributes broadly to the UN's Sustainable Development Goals (SDGs), with key emphasis on 1) Affordable & Clean Energy, 2) Sustainable Cities & Communities, 3) No Poverty, 4) Reduced Inequalities, 5) Good Health & Wellbeing and 6) Industry Innovation & Infrastructure.