Perennial Better Future reaches $250m in FUM

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.