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Nevastar Finance SICAV Climate Change+ Fund EUR Class I Review

Established in 2003, Nevastar Finance is an independent multinational financial investment firm. British, American, Luxembourgian, and Swiss authorities supervise Nevastar Finance. The company has London, Luxembourg, and Geneva offices.

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This article will discuss the Nevastar Finance SICAV Climate Change Fund — its features and overall performance.

What to Know About the Nevastar Finance SICAV Climate Change Fund EUR Class I

Nevastar Finance Climate change fund features
Image by Markus Spiske

NSF Fund Features

As a thematic equity fund, the NSF SICAV seeks to invest in businesses that are working to alleviate environmental problems.

This portfolio includes 50 tech and industrial enterprises exploring and offering sustainability solutions. Wind and solar power, insulating building technologies, sustainable transportation options, and resource management programs are among these solutions.

This investment vehicle is organized as a UCITS fund.

What is a SICAV?

The term SICAV refers to a type of investment vehicle that originated in Europe that allows investors to pool their funds and put them into various assets. Any investor can purchase or sell shares of the fund according to its current net asset value.

What are UCITS?

UCITS mean Undertakings for Collective Investment in Transferable Securities which the EU formed to standardize investment funds across Europe. Such are often modeled as open-end investment funds.

NSF Climate Change Fund Asset Allocation

NSF Climate Change Fund Asset Allocation

Industrials make up 44.50% and IT 43.92% of the NSF Climate Change Fund’s asset allocation. Advanced Energy Industries Inc. and NXP Semiconductors NV are the top two holdings of the portfolio, each with 3.23% and 2.93%, respectively.

North America accounts for 68.08% of the total geographical allocation. Thematic allocation also shows that clean energy accounts for 31.09% of the fund’s total investment and energy efficiency for 38.07%.

What’s the minimum investment for the Climate Change Fund?

Nevastar Finance requires a preliminary investment worth 1 million euros for the SICAV fund.

NSF Charges

All investments with Nevastar Finance are subject to a 1.00% yearly charge. In addition, there is a high-water mark performance charge of 10% that applies to any outperformance.

Nevastar Finance Fund Performance

As of January 31, 2024, the Fund lost 7.63%. The fund also went down 4.96% over the last 12 months. When considering performance over the longer term, i.e., within the last five years, the thematic fund jumped 15.65%. The fund has gained 7.34% on an annualized basis since it began operations in 2010 as well.

Investors have access to daily liquidity through the fund.

Both NEXTracker Inc. and Disco Corp. were the top performers in terms of performance contributions, according to Nevastar Finance. Meanwhile, Sunrun Inc. and SolarEdge Technologies were the most detrimental to performance.Top of Form

Pros and Cons of Nevastar Finance SICAV Investment Option

Pros and Cons of Nevastar Finance Investment Option
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Benefits of the Climate Change Fund

  • Thematic funds in SICAV structures can diversify investments by offering access to v various climate change-related firms and initiatives across industries and locations.
  • Retail investors can invest in the Nevastar Finance SICAV climate change fund through retail investment platforms, financial advisors, or direct investments because UCITS funds are accessible.
  • A 1% yearly charge is moderate in investment funds.

Risks of the Climate Change Fund

  • Since the fund’s performance depends on its climate change focus, themed investing might be risky. Climate change funds focus on long-term trends and structural developments, but if the topic underperforms or has setbacks, returns may suffer.
  • The performance fee rewards outperformance, which aligns fund managers’ interests with investors’, but it can raise the cost of participating in the NSF fund, especially during elevated market performance.

Bottom Line

In terms of performance alone, the Nevastar Finance Climate Change Fund offers mixed results.

The good thing with thematic investing is that it exposes one to trends with tremendous growth potential and new investment opportunities.

In assessing the fund’s appropriateness for investor portfolios, they should take into account the performance relative to market circumstances, investing targets, and susceptibility to risk.

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