We invest in companies that are considered Better Future Investments.
Better Future Investments are companies that at the time of acquisition:
a) Derive more than 50% of their revenue from business operations in:
- Renewable energy, improving energy efficiency or seeking to reduce greenhouse gas emissions; or
- Water treatment or remediation; or
- Environmental services or otherwise focused on environmental outcomes; or
- Improving social welfare outcomes; or
- Health outcomes, products and services; or
- Education
OR
b) Have a Perennial-derived Environmental, Social, Governance and Engagement Score (“ESGE Score”) that exceeds the ESGE score of the benchmark index.
We do not invest in companies that to our knowledge receive any revenue from:
- the manufacture, distribution or sale of tobacco or alcohol products;
- the manufacture, distribution or sale of weapons or armaments;
- extraction or sale of thermal coal, uranium, oil or gas (other than recycled oil);
- gambling or betting operations;
- the production, sale or distribution of pornography;
- the manufacture or distribution of toxic pesticides;
- old growth forest logging; or
- operations or transportation associated with the live exportation of animals offshore.
To outperform the benchmark over the long term after fees and expenses, by investing in a diversified portfolio of mainly smaller and mid-cap companies that are Better Future Investments.
The Trust may be suitable for investors with an investment horizon of five years or more, who are seeking exposure to a portfolio of mainly smaller or mid-capitalisation companies listed (or soon to be listed) on the ASX or New Zealand stock exchanges.
Smaller Companies Sustainable Future Trust Commentary 10/18