Financial Newswire – Oksana Patron
The Perennial Better Future Strategy, which sits under the Perennial Partners umbrella, and invests in mainly smaller and mid cap companies shaping a better future has reached its five-year milestone with approximately $250 million in funds under management (FUM).
Since its inception the Trust has delivered 7.2% p.a. return after fees, outperforming its benchmark, the S&P/ASX Small Ordinaries Accumulation Index, by 3.9% p.a. (as at 31 March 2023).
This was underpinned by the Better Future team’s strong focus on engagement with portfolio companies. Over the five years the trust conducted over 1,000 meetings, including more than 250 dedicated to environmental, social, governance (ESG) goals.
This also included a further focus on gender diversity, at both the broad and senior executive level, and since the trust’s inception 68 female directors have been appointed to the boards of companies held by it.
The other recent engagement areas of focus also included disclosure of greenhouse gas emissions as well as setting of reduction targets and, separately, it focused on modern slavery.
As of 31 March, 2023, 50% of the portfolio sat within the higher impact sectors while Better Future enablers were typically the companies that had a relatively lower environmental footprint, with the carbon intensity of the portfolio is 83.1% less than the benchmark.
The strategy invests in areas such as healthcare, education, renewable energy, technology improving energy efficiency, resource use or reducing greenhouse gas emissions, environmental services, companies contributing to social welfare outcomes, including improving the safety, health or well-being of workers.
It has a “Recommended” Investment rating from both Zenith and Lonsec and an “Impact” Sustainability rating from Lonsec and a “5 bees” Sustainability Score from Lonsec – each of which is the highest rating available, the firm said.
Read the original article on Financial Newswire.
The rating issued 09/2022 (Research rating) & 03/2023 (Sustainability score) for Perennial Better Future Trust are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2022 Lonsec. All rights reserved.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned March 2023) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.