CERTIFICATION QUARTERLY WEBINAR APRIL 2018 RIAA MEMBER ONLY WEBINAR - - PowerPoint PPT Presentation
CERTIFICATION QUARTERLY WEBINAR APRIL 2018 RIAA MEMBER ONLY WEBINAR 18 April 2018 Presenters: Tom King and Eric Siegloff - Nanuk Asset Management John Berry - Pathfjnder Asset Management Alexander Austin - Infradebt Responsible Investment
CERTIFICATION QUARTERLY WEBINAR APRIL 2018
RIAA MEMBER ONLY WEBINAR 18 April 2018
Presenters: Tom King and Eric Siegloff - Nanuk Asset Management John Berry - Pathfjnder Asset Management Alexander Austin - Infradebt
Responsible Investment Association Australasia
Nanuk New World Fund
A Global Equity Strategy
focused on
Environmental Sustainability
and
Resource Efficiency
April 2018
Nanuk Asset Management
– Combined industry experience: Principals & CEO 130 yrs, Investment team 48 yrs
– Global Alpha Fund - a long-short absolute return global equity strategy, since June 2011 – New World Fund - a long-only global equity strategy, since November 2015
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Incorporation of Nanuk Asset Management Built research capability and fund setup Long-Short Model Portfolio, plus managed account Launch of Clean Energy Fund (Long- Short) Expanded universe, redefined strategy (absolute return) and renamed “Global Alpha Fund” Expanded Investment Team Established presence in UK and US Launch New World Fund (NNWF) (Long-Only) Appoint CEO
Oct 2009 Jun 2011 Aug 2014 Sep 2013 Nov 2015 Dec 2009 2015/16 Oct 2016
Register NNWF (PDS) Appoint Head of Distribution SQM rates NNWF “Superior / High Investment Grade” Australia Ratings rates NNWF “Strong” Lonsec rates NNWF “Investment Grade” RIAA certifies NNWF as Ethical Investment
May 2017 Aug 2017 Nov 2017 Mar 2018 Aug 2017 Jun 2017
50 100 150 200 250 300 350 400 450
MSCI All Country World Total Return Index (AUD) FTSE Environmental Opportunities All-Share Total Return Index (AUD) NANUK New World Strategy (AUD)
The Tailwind
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global economy
Sources: Nanuk, Bloomberg, FTSE Russell, $A, annualised returns to 31/1/2018. The Nanuk “Strategy” performance constitutes the following: (1) Nanuk New World Fund since launch on 2 Nov 2015 , and (2) gross / pre-fee performance of the long book of the Nanuk Global Alpha Fund less an annualized expense ratio of 2.9% (from 31 Jul 2012 to 1 Nov 2015) . NB: Past performance is not an indicator of future performance. Index Return
(AUD, 31 Mar 2018)
1 Yr 15 Yrs
FTSE EOAS 16.1% 11.3% MSCI ACWI 12.4% 7.5% Outperformance 3.6% 3.8%
Traditional Index Environmental Index Nanuk “Strategy”
Motivations & Beliefs
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– climate change, water scarcity and pollution are real challenges
– to assist the transition to greater environmental sustainability & resource efficiency – introducing many investment opportunities and risks
processes, enabled by technology and rising demand, are falling dramatically
– attracting corporate capital flows
Ø Nanuk invests in listed global companies which contribute to improving resource efficiency and environmental sustainability
The Sustainability Revolution
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Agricultural Revolution Industrial Revolution Digital Revolution
Sustainability Revolution
– surpassing and supplanting unsustainable technologies and industries in the coming decades
Nanuk New World Fund (NNWF)
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–
– sustainably themed – utilises both positive & negative screening – integrates ESG into the investment analysis & decision making process – embraces social & ethical values and norms
– Nanuk’s 8 core themes
Sector Fund Weight Example Areas Of Investment Energy Efficiency 25% LED lighting, OLED, building energy efficiency, auto energy efficiency, electrical energy efficiency, vehicle electrification (EVs) Clean Energy 20% Solar, wind, hydro, fuel cells, transmission and distribution, smart metering, energy storage (batteries), biofuels, demand response Industrial Efficiency 22% Factory automation, robotics, ‘internet of things’, commercial drones, 3D printing, advanced manufacturing Waste & Pollution 11% Waste management, waste to energy, recycling, pollution control Food & Agriculture 8% Agricultural equipment, fertilizers, chemicals, food processing, forestry and forest products Advanced Materials 9% Sustainable materials, advanced materials, lightweight materials Water 2% Desalination, water efficiency, waste water processing, water supply, infrastructure Healthcare Technology 3% Wearable devices, diagnostic technology, healthcare solutions, data analytics 7
NNWF - Portfolio Sector Allocations
Sector allocations access a broad range of environmental sustainability-related trends
Source: Nanuk, as at 31 Mar 2018`
Company Exclusions - around three main areas
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Nanuk New World Fund FTSE EOAS (benchmark) Number of Stocks 69 505 Median Market Cap (US$bn) 12.4 3.1 PE Ratio (FY1) 15.1 17.9 ROE 21.0% 15.7% Downside / Upside Capture (since inception) 94% / 100%
New World Fund - Portfolio Characteristics
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Sources: Bloomberg, FactSet & Nanuk, as at 31 Mar 2018
– higher return on capital and better value than benchmark indices
–
–
–
Fund & Strategy Performance
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New World Fund Performance
(to 31 Mar 2018, %)
3 mth 1 yr 2 yr (pa) Since Fund Inception (pa) New World Fund Return (%) 6.5 27.8 23.2 17.1
FTSE EOAS Benchmark Return 2 (%) 0.5 17.9 18.9 12.2
Value Added (%) 6.0 9.9 4.3 4.9
MSCI ACWI Return 3 (%) 1.0 14.2 15.1 7.7
Value Added (%) 5.5 13.6 8.1 9.4
L-T Strategy Performance
(to 31 Mar 2018, %pa)
1 Yr 2 Yrs 3 Yrs 4 Yrs 5 Yrs Nanuk New World 27.9 23.2 15.6 16.1 24.9 Benchmark Return 17.9 18.9 10.6 14.0 18.8 Value Added 10.0 4.3 5.0 2.1 6.1 Tracking Error 4.7 4.6 4.7 4.7 5.3 Information Ratio 2.1 0.9 1.1 0.5 1.1 Fund Performance: Notes (1) Inception date November 2, 2015 (2) Benchmark = FTSE EOAS TR $A (3) MSCI ACWI TR $A Sources: Factset, SQM, Nanuk. The Nanuk: “Strategy” performance constitutes the following: (1) Nanuk New World Fund since launch on 2 Nov 2015 , and (2) gross / pre-fee performance of the long book of the Nanuk Global Alpha Fund less an annualized expense ratio of 2.9% (from 31 Jul 2012 to 1 Nov 2015) . NB: Past performance is not an indicator of future performance.
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– wholly-focused on investing in environmental sustainability & resource efficiency – 8 years of building unique IP around sustainably-themed investing – pragmatic, ESG-aligned, responsible & sustainable investment approach
“this is all we do”
– significant diversification benefits for Australian investors – rigorous investment processes coupled with a unique multi-PM model – differentiated from traditional global equity funds
“strong outperformance since inception”
Summary
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The world is changing. Don’t get stranded.
Nanuk Asset Management Pty Ltd Level 8, Kyle House 27-31 Macquarie Place Sydney NSW 2000 Australia Tel +61 2 9258 1600 Fax +61 2 9258 1699
Dan Powell Head of Distribution Tel +61 2 9258 1612 Mob +61 419 914 212 Email dan.powell@nanukasset.com Eric Siegloff CEO Tel +61 2 9258 1606 Mob +61 481 751 615 Email eric.siegloff@nanukasset.com
Disclaimer
This presentation is prepared by Nanuk Asset Management Pty Ltd (‘Nanuk’) (AFS Licence no. 432119) for wholesale clients
situation or needs of any particular person and is not to be taken into account as containing any personal investment advice or
those matters. While this presentation has been prepared with all reasonable care, no responsibility or liability is accepted for any errors, omissions or misstatements however caused. No warranty is provided as to the accuracy, reliability and completeness of the information in this presentation and you rely on this information at your own risk. Any prospective yields or forecasts referred to in this presentation constitute estimates which have been calculated by Nanuk’s investment team based on Nanuk’s investment processes and research. To the extent permitted by law, all liability to any person relying on the information contained in this presentation is disclaimed in respect of any loss or damage (including consequential loss or damage) however caused, which may be suffered or arise directly or indirectly in respect of such information. Any past performance information in the presentation is not a reliable indicator of future performance. This presentation should not be construed as an offer to sell or the solicitation of an offer to buy any financial services or financial products. This document is confidential, is intended only for the person to whom it has been delivered and under no circumstance may a copy be shown, copied, transmitted or otherwise given to any person other than the authorised recipient. Performance results are shown for illustration and discussion purposes only. Cover image: NASA Earth Observatory image by Robert Simmon, using Suomi NPP VIIRS data provided courtesy of Chris Elvidge (NOAA National Geophysical Data Center). Suomi NPP is the result of a partnership between NASA, NOAA, and the Department of Defense. 13
Responsible Investment Association of Australasia webinar 18 April 2018
§ Resource scarcity § Climate change § Population growth § Infrastructure § Urbanisation
§ Auckland based § 5 retail funds § ESG focus in global assets § “Top down” investment process
1) This is not personalised financial advice 2) Speak to an Authorised Financial Adviser before making investment decisions 3) Our PDS is available at www.path.co.nz
§ industrials § utilities § materials § healthcare § info tech
Revenue exclusions Water stocks Controversy Rating Macro views
Stock selection Thematic Exclusions
In-house exclusions ESG Optimisation
Revenue exclusions NZ Super Fund Gambling Tobacco Adult entertainment Thermal coal Controversial weapons Controversy rating Sustainalytics research In-house exclusions Pathfinder review
Revenue exclusions Water stocks Controversy Rating Macro views
Stock selection Thematic Exclusions
In-house exclusions ESG Optimisation
Geographic tilts Sector tilts Factor tilts Optimise for ESG
Company engagement
§ Directly held, full transparency § Target 50% currency hedge § 1.3% all inclusive fee § PIE fund structure www.path.co.nz
April 2018
OVERVIEW
IEF is Australia’s first ethically screened private debt fund. IEF is focused
infrastructure projects that make a positive and sustainable difference to society. Key Sectors
Renewable Energy Social Infrastructure Property Investing
Where there is a impact/ environmental component
Delivers
Attractive Returns Positive Environmental & Social Impact
Lending to real assets, making a real difference
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Infradebt
fund manager
investment horizon of superannuation funds and borrowing needs of infrastructure projects
infrastructure investment experience
Swan Hill Solar Farm
Project
Royal Womens Hospital
episodes of care
Amaroo School Solar
scale feed in tariff
CURRENT PORTFOLIO Strong Returns
Utility Scale Solar Wind Farms Embedded Solar Social Housing/NDIS Accommodation Social Infra/PPPs Biogas Hydro/Storage
90% 2% 0% 0% 8% 0% 0% 96% renewable energy
Max 25% Max 15% 3
Date YTM Spread
Current Portfolio 6.08% 3.95% Portfolio + Pipeline 6.37% 4.21%
* Forecast as of 31 March 2018
Returns
* Allocations as of 31 January 2018
4.0% 5.0% 6.0% 7.0% 8.0% Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Aug-18 Sep-18 YTM
10 15 20 25 30 35 40 45 Sep-2017 Nov-2017 Jan-2018 Mar-2018 May-2018 Jul-2018 Sep-2018 Nov-2018 Jan-2019 Mar-2019 May-2019 Jul-2019 Sep-2019 Capital Commitments ($m) Uncommited capital Commitments - undrawn Commitments - drawn
SUMMARY
Compelling risk adjusted returns for fixed income/defensive portfolio
Construction phase jobs
Attractive Returns
Positive Environmental & Social Impacts
6-7%
Portfolio yield to maturity
4%
Spread over risk free
4+
Projects
81,000 MWh a year of renewable energy
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4 Lending to real assets, making a real difference
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DISCLAIMER
Purpose of Presentation
Limited ASFL 438986 (Infradebt) on a confidential basis for distribution only to professional and sophisticated investors in Australia whose ordinary business is to buy and sell investments of the type described in this document in circumstances where disclosure is not required to be made to investors under the Corporations Act 2001 (Cth) (Corporations Act). It is not intended for, and should not be distributed to, any other person and it must not be distributed to any person who is a retail client for the purpose of the Corporations Act or to any person
Disclosure Statement (PDS) or Prospectus required to be lodged with the Australian Securities and Investment Commission (ASIC) in accordance with the Corporations Act and it does not contain all of the information that such a PDS or Prospectus is required to contain or that an
financial product.
Responsibility for Information
believes to be correct and based on the information available to it and the facts and circumstances in existence as at the date of this document. Neither Infradebt nor any of its related entities, associates,
responsibility or liability for the authenticity, origin, validity, accuracy or completeness of any information, statement
accompanying, previous or subsequent material
Infradebt and its related entities, associates, officers, employees and agents disclaims all and any responsibility for any loss or damage which may be suffered by any person relying upon any information contained in, or any omissions from, this document.
Reliance on Presentation
account any particular person or entities objectives, financial situation or needs; does not purport to identify the nature of specific market or other risks associated with any investments described within it; and does not constitute any legal, taxation, investment or accounting
based on certain assumptions and current market conditions and is subject to change without notice. No information in this document constitutes a prediction or forecast as to the performance of any investments. Any historical information contained in this document is provided by way of illustration only; past performance is not a guide to future performance and actual performance may differ materially. Assumptions upon which financial illustrations are based may differ from actual circumstances. No reliance should be placed on the information in this document and any investment decision should be based only on the information in final
inquiry, assessment and advice in respect of the products and investments described herein.
Confidential
must not be disclosed to any person or replicated in any form without the prior written consent of Infradebt.
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CERTIFICATION QUARTERLY WEBINAR APRIL 2018
RIAA MEMBER ONLY WEBINAR 18 April 2018
Presenters: Tom King and Eric Siegloff - Nanuk Asset Management John Berry - Pathfjnder Asset Management Alexander Austin - Infradebt
Responsible Investment Association Australasia