Specialist global equities manager Nanuk Asset Management has marked 10 years of its New World Fund.
The fund aims to align change by investing in global equities that benefit from the structural transition to greater resource efficiency and environmental sustainability and is certified as Sustainable Plus by the Responsible Investment Association of Australasia (RIAA).
The $943 million New World Fund consists of a concentrated, high‑conviction global equity portfolio style neutral and all‑cap with a focus on companies contributing to clean energy, energy efficiency, industrial efficiency, advanced materials, waste management, sustainable agriculture and healthcare technology.
Commenting to Money Management on why he believes the fund has maintained strong performance, Nanuk chief investment officer and portfolio manager, Tom King, said: “The fund has a diversified portfolio that covers both new, higher growth technologies as well as more mature industries, providing a consistent source of investment opportunities.
“The fund’s performance has been achieved with a pragmatic investment approach focused on finding good quality, profitable businesses at attractive valuations, leveraging the firm’s 15 years’ experience focused on investing in industries related to sustainability and resource efficiency.”
He added: “We remain focused on seeking good investment opportunities as the global economy continues to change and delivering outperformance for our clients and the financial advisers who support them.”
The fund has returned 19 per cent per annum over three years to 30 November versus returns of 19.5 per cent by the MSCI ACWI index.
Recent fund performance has been helped by AI exposure through investments spanning semiconductors, design and fabrication, components used in data-centre infrastructure and industrial automation.
King said: “Beyond the immediate investment appeal, we see AI as an important long-term contributor to sustainability outcomes through widespread productivity improvement and by supporting improved energy management, greater industrial efficiency, and continued innovation in fields such as materials and healthcare.”
With the fund now have reached a decade of tenure, King said Nanuk is “actively considering applying our industry and investment expertise to other strategies and asset classes”.
It currently offers a $144 million currency-hedged version of the fund which was launched in May 2023 and involves hedging the majority of direct foreign currency exposure arising from holding international currency-denominated cash and equity securities.
It subsequently launched an active ETF version in October 2024 which uses a dual access mechanism.
“The move to launch the Nanuk New World Fund’s hedged unit class as an ETF has been driven by adviser demand for listed access to the currency hedged version of the fund, launched last year, which has attracted solid support from advisers and investors,” King said at the time.
