Nanuk New World aims to provide investment returns which exceed the Fund’s benchmark index return – the FTSE Environmental Opportunities All Share Total Return Index, after Management Fees and Usual Expenses, over the long term. The Fund provides exposure primarily to a diversified portfolio of listed global equity securities focused on the broad themes of environmental sustainability and resource efficiency.
The Fund declined 4.8% during September, underperforming conventional global equities indices, such as the MSCI All Country World and FTSE All World net total return indices, by approximately 1.1%.
Global equities markets declined sharply during the month and benchmark bond rates in the US increased, negatively impacting higher growth stocks. The Fund’s underperformance during the month was primarily attributable to the relative outperformance of the Financials and Energy (i.e. oil and gas) sectors, to which the strategy has limited and no exposure, and the negative contribution of Zebra Technologies, discussed below – along with an absence of any significant outperformers.
What is Nanuk New World Nanuk New World is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Responsible Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Nanuk New World has Assets Under Management of 346.90 M with a management fee of 1.2%, a performance fee of 0.00% and a buy/sell spread fee of 0.25%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the Nanuk New World has returned 4.62% in the last month. The previous three years have returned 9.58% annualised and 12.84% each year since inception, which is when the Nanuk New World first started.
How is risk measured in this investment product? There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Nanuk New World first started, the Sharpe ratio is 0.79 with an annualised volatility of 12.84%. The maximum drawdown of the investment product in the last 12 months is -9.33% and -22.46% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product? Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Nanuk New World has a 12-month excess return when compared to the Foreign Equity - Large Responsible Index of 0.28% and 0.8% since inception.
Does the investment product produce Alpha over its Peers? Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Nanuk New World has produced Alpha over the Foreign Equity - Large Responsible Index of -0.53% in the last 12 months and 0.03% since inception.
What are similar investment products? For a full list of investment products in the Foreign Equity - Large Responsible Index category, you can click here for the Peer Investment Report.
What level of diversification will Nanuk New World provide? Nanuk New World has a correlation coefficient of 0.95 and a beta of 1.4 when compared to the Foreign Equity - Large Responsible Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers? For a full quantitative report on Nanuk New World and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Nanuk New World with the Developed -World Index? For a full quantitative report on Nanuk New World compared to the Developed -World Index, you can click here.
Can I sort and compare the Nanuk New World to do my own analysis? To sort and compare the Nanuk New World financial metrics, please refer to the table above.
Has the Nanuk New World been independently verified by SMSF Mate? This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Nanuk New World? 
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Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the Nanuk New World. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The Fund returned 0.4% during August, underperforming conventional global equities benchmarks, such as the MSCI All Country World and FTSE All World net total return indices, by approximately 0.7%.
The Fund’s relative performance reflected the underperformance of environmental equities and was impacted by both sectoral and geographic exposures, with the Fund underweight US equities and sectors such as Energy (oil & gas) that outperformed during the month. The outperformance of the Fund’s holdings in US technology services providers was offset by underperformance of European and industrial stocks. Key contributors are both discussed below.
Globally equities markets reported declines in August, however the Australian dollar weakened by more than 3% against the US dollar during the month, benefitting Australian investors and bolstering Australian dollar denominated returns.
Performance Commentary - July 31, 2023 The Fund returned 2.2% for July, underperforming conventional global equities indices, such as the MSCI All Country World and FTSE All World net total return indices, by approximately 0.2%.
Global equities markets continued to perform strongly during the month and the relative performance of the Fund was modestly impacted by the outperformance of the Financials and Energy sectors, which broadly fall outside of the Fund’s remit, and the strong performance of large cap technology stocks Alphabet and Meta, which are not in the Fund’s investment universe. Those effects aside, the Fund’s monthly performance reflected a mix of stock specific out and under performers, with the notable contributors discussed below.
Performance Commentary - June 30, 2023 The Fund returned 1.3% during June, lagging conventional global equities benchmarks, such as the All Country World Net Total Return Index, by around 1.6%. Year to date in 2023 the Fund has returned 16.5% and has outperformed conventional global equities benchmarks by around 0.4%.
Global equities markets rose during the month, with Australian dollar denominated returns partially offset by the strengthening of the Australian dollar against the US dollar. Global equities returns were again led by the strong performance of mega cap growth stocks such as Tesla, Apple and Nvidia. The Fund’s lack of exposure to this set of stocks contributed to the monthly underperformance, however the major detractors were stock specific, as discussed below.
Performance Commentary - May 31, 2023 The Fund returned 0.4% in May, underperforming traditional global equities benchmarks, such as the MSCI All Country World Net Total Return Index, by 0.7%.
Equity market behaviour during the month was significantly driven by NVIDIA Corporation’s outlook for growth in sales of its high performance computing processors – used in gaming and, more notably, artificial intelligence (AI) related applications. The company, which is not a holding of the Fund, guided to quarterly sales 45% above consensus expectations, driven by strong demand from its Data Center segment as both enterprise customers and cloud service providers rush to build out AI processing capability. NVIDIA’s share price rose 57% over the month and led large gains in the ‘FAANG’ technology stocks which are generally perceived as beneficiaries of AI.
The Fund holds a range of stocks that we believe are likely to benefit from the development and increasing use of AI and in aggregate these stocks contributed positively to the Fund’s performance. However, the large contribution of the large cap ‘FAANG’ stocks to index performance of stocks, including companies such Apple, Alphabet, Meta and Netflix that are not within the Fund’s eligible investment universe, was the primary reason for the Fund’s modest underperformance during the month.
The Fund’s holdings with exposure to AI include direct cloud service providers Amazon.com, Inc (+14%) and Microsoft Corporation (+7%); semiconductor memory leaders Micron Technology, Inc. (+6%) and Samsung Electronics Co., Ltd. (+10%); the manufacturer of NVIDIA’s processors Taiwan Semiconductor Manufacturing Co., Ltd (+17%); semiconductor capital equipment providers Advantest Corp. (+65%, discussed below), KLA Corporation (+15%); and silicon wafer manufacturer Shin-Etsu Chemical Co Ltd (+8%).
The Fund also holds positions in technology consultancies Accenture Plc (+9%) and Cognizant Technology Solutions Corporation (+5%), which will generate new business from customers seeking assistance to adopt and utilise AI.
The Fund also holds positions in several information services business that already utilise different AI approaches to provide deeper information and analytics from their, and their clients’, proprietary databases, and for which additional growth from these services has supported share price outperformance in recent years. These holdings underperformed during the month after US educational software company Chegg Inc. (not a holding of the Fund) issued a major cut to its guidance attributed to the impact of ChatGPT.
Pearson plc (-11%) has a focus on education and was most adversely impacted, whereas Wolters Kluwer NV (-13%) and Relx plc (-6%) focus on information analytics and decision tools in areas such as health, tax and accounting, finance, science, and law. We believe the significant intellectual property controlled by these companies will allow them to continue to use AI capabilities to their benefit over time.
Performance Commentary - April 30, 2023 The Fund returned 1.2% in April, underperforming traditional global equities benchmarks, such as the MSCI All Country World Net Total Return Index (ACWI), by 1.6%.
The Fund’s performance was impacted by the underperformance of environmental equities, reflected by indices such as the FTSE Environmental Opportunities All Share Total Return Index, which declined by 0.5% (in Australian dollar terms). Sectors in which the Fund has little or no exposure, such as Energy and Financials, outperformed, whereas sectors such as manufacturing and electronic technology, in which the Fund is overweight, underperformed.
The Fund’s exposure to more defensive areas, such as information services, healthcare technology and waste management, contributed positively to returns.
Performance Commentary - March 31, 2023 The Fund returned 4.4% during March, outperforming traditional global equities benchmarks, such as the MSCI All Country World Index (ACWI), by 0.6%. Out-performance largely reflected the absence of exposure to the Financials sector which underperformed in a month when Silicon Valley Bank and Signature Bank failed in the US and Credit Suisse was taken over by UBS with support from the Swiss government. Notable contributions from individual stocks are highlighted below. For the quarter ending 31 March 2023, the Fund returned 13.2%, outperforming traditional global equities benchmarks such as the MSCI All Country World Net Total Return Index by 4.5%. The quarterly outperformance reflected both a reversal of sector headwinds experienced during 2022 – with areas outside the Fund’s focus such as Energy and Financials underperforming – and positive stock specific contributions from European industrials and US technology stocks that performed strongly during the quarter.
Performance Commentary - February 28, 2023 The Fund returned 2.7% during February, outperforming traditional global equities benchmarks, such as the MSCI All Country World Net Total Return Index, by 1.3%. The Fund’s outperformance was supported by strong stock specific returns, discussed below, and the Fund’s overweight exposure to European equities, which outperformed during the month. The significant depreciation of the Australian dollar against the US dollar also supported the Fund’s positive returns during a month in which headline (US dollar denominated) global equities benchmarks declined.
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