Lonsec upgrades Perennial’s trust

Lonsec has upgraded Perennial’s Better Future Trust to ‘recommended’ rating, in a move which has reflected the research house’ increased conviction in its ‘investment team’s capabilities and the differentiated approach’.

The portfolio focuses on small and mid-cap companies with between 30 to 50 stocks and aims to deliver consistent returns while ‘shaping a better future’, with the strategy having returned 8.3% per annum since inception and managed to outperform the S&P/ASX Ordinaries Smalls Accumulation Index by 3.9% pa, net of fees.

Perennial said the strategy also benefitted from strong demand with funds under management (FUM) at $240 million at the end of August, helped by $100 million institutional mandate from Mercer Investments.

Lonsec said it had 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.

“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,” Damian Cottier, portfolio manager for the Perennial Better Future Trust, noted.

“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.”