In this post, we’ll explore the SICAV Wealth Defender Global Equity Fund of investment provider Nevastar Finance. We’ll look into the investment option‘s features and performance, as well as fees.
Nevastar Finance is a global financial investment company established in 2003. It rolled out the USD class I fund on Feb. 9, 2016.
The NSF Global Equity Fund has a UCITS fund structure.
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You need to understand the advantages and disadvantages of global equity investing and get necessary advice to execute the most suitable investment strategy.
Everything to Know About NSF SICAV Global Equity Fund
NSF SICAV Fund Features
Luxembourg-based open-end fund NSF SICAV Wealth Defender Global Equity Fund invests in companies that use competitive advantages to preserve or increase margins amid elevated costs to increase capital appreciation.
NSF Global Equity Fund Asset Allocation
With 32.48% of its holdings going into the IT sector, the fund is heavily weighted in that area; consumer discretionary follows at 15.41%.
The fund’s 29 holdings are all multinational corporations with strong pricing and market advantages. These businesses may easily raise prices in line with inflation without seeing a decline in consumer loyalty.
Holdings of 5.85% in ASML Holding NV and 5.19% in Oracle are among the investment provider‘s top holdings.
These businesses have a lot of success: little debt, high margins, and increasing profits.
The United States accounts for 76.70% of the fund’s geographic distribution, making it the most heavily allocated country.
Nevastar Finance Investment Minimum and Charges
Investors are required to invest at least 1 million USD into the NSF Wealth Defender Global Equity Fund to participate.
Nevastar Finance charges 1% for yearly fees and performance fee of 15% for outperformance, subject to certain conditions.
NSF Global Equity Fund Performance
A return of 2.91% was achieved by the NSF Wealth Defender I USD fund in January 2024. The fund has also recorded a yield of 16.03% in the last year.
Long term, the fund has generated respective annual returns of 5.79% and 10.74% in the last three years and five years. Since the Global Equity Fund’s 2016 rollout, the product has returned 12.84% annually and offered daily liquidity.
While ASML Holding and Nvidia Corp. were the top performers, UPS Inc. and Apple Inc. were the lowest performers, according to Nevastar Finance.
Other NSF SICAV Share Classes
The minimum investments for the Wealth Defender Global Equity Fund Class C, denominated in USD, euros, and British pounds, are $10, 10 EUR, and 10 GBP respectively.
The annual fee for all Class C shares is 1.90%. Class I Euros require a minimum investment of a million euros and a reduced annual cost of 1%; Class I British Pounds, meanwhile, demand a minimum investment of 750,000 GBP and a fee of 1%. Both classes cater to larger investors.
Pros and cons of NSF Wealth Defender Global Equity Fund
Benefits of the Global Equity Fund
- With exposure to global equity markets, the portfolio spreads risk across countries and sectors.
- As a UCITS fund, investors can purchase or sell shares daily.
- It must report holdings, performance, and fees regularly as a regulated fund, giving investors transparency.
- Global shares may appreciate over time as economies and firms grow.
Risks of the Global Equity Fund
- The equity fund is vulnerable to market swings and economic uncertainty, which can cause short-term losses like other equity investments.
- The fund has risks and no promise of returns or capital preservation. Investors should expect loss, especially in bad markets.
- Comparatively, a 15% outperformance fee is high. Since these costs reduce investor returns, they can make it difficult for the fund to outperform the market. Managers may prioritize short-term profits above long-term investor benefit when fees are excessively high.
Final Thoughts
The Nevastar Finance Global Equity Fund has shown strong performance in the past and shows promise for future returns on investment, which is crucial for a solid financial plan.
However, bear in mind that past performance does not guarantee that investment options will continue to perform well in the future.
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