Australian sustainable-centric global equities manager, Nanuk Asset Management, is set to launch a NZ tax-efficient version under a hosting agreement with Clarity Funds.
The Nanuk New World Active PIE (portfolio investment entity) fund is expected to open to investors in October with the product documentation already lined up.
Established in 2009, the manager started marketing its Australia-domiciled fund to NZ investors in 2020 amid burgeoning demand for sustainability-themed products.
Nanuk began offering the Australian unit trust as an ASX-listed exchange-traded fund (ETF) in 2022, which the new PIE invests into.
The release marks the third global equities fund-hosting gig for Clarity following the launch of strategies managed by MFS and Capital group in 2017 and 2019, respectively.
As at the end of June this year, the Clarity-hosted MFS fund reported almost $193 million under management with the group’s Capital PIE holding more than $148 million.
The Nanuk move comes after a string of Australia-based managers entered the PIE game with global share funds including Munro Partners, Insync and Pella.
Clarity is part of the Investment Services Group (ISG) conglomerate that also includes Devon, Tahito, JMI Wealth and Select Wealth. In June this year, the Swiss-owned Australian wealth manager, Shaw & Partners, bought 75 per cent of ISG for almost $70 million.
Richard O’Brien, ISG chief, said Nanuk has built “an established investor base” in NZ for the Australian-based product but feedback indicated that “a PIE would be helpful to support further growth”.
“Initial support is expected to come from some of the existing investors who are likely to switch across to the PIE once available,” O’Brien said.
In line with the underlying Australian fund, the Nanuk PIE carries an annual management fee of 1.1 per cent. Clarity has appointed Guardian Trust as custodian and supervisor with Apex for administration (including registry).
The core Nanuk fund reported about A$760 million under management at the end of August while an Australian dollar-hedged version of the strategy held some A$125 million.
According to fund documents, the manager targets exposure to global stocks in sectors “such as clean energy, energy efficiency, industrial efficiency, advanced and sustainable materials, waste management, recycling and pollution control, food and agricultural productivity and healthcare technology”.
Since inception in 2015, the Nanuk New World fund returned an annualised 13 per cent versus 11.8 per cent for the benchmark MSCI All Country World Index (in Australian dollar terms).
Nanuk was co-founded by Australian financial services veterans Paul Chadwick, Tim Ryan and Ivan Wheen with Tom King serving as chief investment officer since inception.