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Reputable rating house, Lonsec has upgraded Perennial’s Better Future Trust to a ‘Recommended’ rating, in recognition of their increased conviction in the investment team’s capabilities and the differentiated approach.
The actively managed and diversified portfolio focuses on small and mid-capitalisation companies with between 30 – 50 stocks, aiming to deliver strong and consistent returns while shaping a better future.
The strategy has returned 8.3% p.a. since inception, outperforming the S&P/ASX Ordinaries Smalls Accumulation Index by 3.9% p.a. net of fee’s.[1]
Since inception in February 2018, the Better Future strategy has experienced strong demand with funds under management (FUM) of A$240 million as at 31 August 2022. This includes an A$100 million institutional mandate from Mercer Investments.
Perennial Better Future was pleased to receive the Recommended rating from Lonsec as part of the Australian Equities review. Lonsec identified the Perennial Better Future Trust as having a large and well-resourced investment team, a differentiated strategy with an emphasis on seeking companies that are deemed to have a positive impact on society and an investment process based on deep fundamental research. Damian Cottier, Portfolio Manager for the Perennial Better Future Trust said “The Lonsec investment rating upgrade provides recognition for the Perennial Better Future investment approach. We believe that you can shape a better future while pursuing strong and consistent returns”.
Cottier continued; “Our interactions within the market suggests that investors and consumers are becoming increasingly aware of ESG implications on society and the environment.”
“We are seeking to invest in companies with exposure to activities such as healthcare, education, renewable energy or technology that assists with decarbonisation or improves social outcomes. We employ a style neutral approach with negative screens that exclude any companies that derive revenue from controversial activities, including alcohol, tobacco, weapons, and live animal exports”.[2]
The Perennial Better Future Trust has a Lonsec Sustainability Score of five bees (indicating the Trust is in the top 10% of all Lonsec-rated Australia equity funds) and is Zenith Recommended. Perennial has also been recognised as being a Responsible Investment Association Australasia (RIAA) Responsible leader for three consecutive years (2020, 2021 and 2022) and has been identified as a top 10 Responsible Investment Leader in 2022.
[1] As at 31 August 2022. Past performance is not a reliable indicator of future performance.
[2] The full list of exclusions is available in the Perennial Better Future Trust PDS and on the Perennial Partners website.
Disclaimer: Please note that these are the views of the writer and not necessarily the views of Perennial. This article does not take into account your investment objectives, particular needs or financial situation. Some small changes were made to this article, based on updated information.
