Nanuk New World Fund

Product Name

Nanuk New World Fund

Issuer

Nanuk Asset Management

Category

Investment product

Type

Fund/Trust

Target

Wholesale

Certified Since

2017

Certification Symbol

Ethical

Asset Classes

Equities - International markets

Markets

Australia, New Zealand

Investment Approaches

Sustainability themed, Negative Screening, Norms-based approach, ESG integration

It Includes

  • Riaa icons 11 More sustainable companies
  • Riaa icons 10 Renewable energy
  • Riaa icons 12 Healthcare & medical products
  • Riaa icons 13 Sustainable transport
  • Riaa icons 15 Social & community infrastructure
  • Riaa icons 31 Sustainable water
  • Riaa icons 30 Sustainable land management & agriculture

It Excludes

  • Riaa icons 33 Fossil fuels
  • Riaa icons 35 Tobacco
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 36 Armaments
  • Riaa icons 41 Alcohol
  • Riaa icons 42 Gambling
  • Riaa icons 55 Pornography

Overview

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.


Description


Responsible & Sustainable Investing. The Nanuk New World Fund is 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 "basic needs" contributions associated with 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.
  • 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.  
  • Uranium - Mining & Refining >0%.
Norms-based Investing. Nanuk does not invest in many companies whose business practices are known to contravene the following international norms: human rights, labour standards, anti-corruption and severe environmental damage.

Sustainable Development. The Fund provides diversified access to the UN's Sustainable Development Goals (SDG's) through basic needs provision in areas such as food, health, transport, energy and waste - particularly via SDGs 6, 7, 9, 11, 12, 13 and 14.