Mercer Invests $100 Million in Perennial Partners Strategy
Mercer Investments has provided Perennial Partners with $100 million for investment in its Better Future Strategy.
The RIAA-approved Better Future Strategy is an actively managed portfolio that focuses on small and mid-cap companies with a commitment to ethics.
A substantial portion of the portfolio is invested in companies that operate in global markets in sectors that improve environmental or social outcomes, such as healthcare, education, renewable energy, technology enhancing energy efficiency or resource utilisation, and technology enhancing occupational health and safety outcomes.
Thermal coal, met coal, uranium, oil and gas, alcohol, tobacco, guns, old-growth logging, gambling, pornography, harmful pesticides, and live exports are excluded from the portfolio. It selects equities using a proprietary ESG&E (environmental, social, governance, and engagement) score system, with E, S, and G each weighted at 20% and engagement at 40%.
Damian Cottier, portfolio manager at Perennial Better Future, commented on the mandate that it is great to be recognised for a differentiated and genuine approach to ESG and sustainable investment.
"We are leveraging Perennial's large and experienced investment team to find companies that are shaping a better future while pursuing strong, consistent returns for our investors," Cottier said.
"In this way, we are empowering investors and companies that are seeking to shape a better future.
"Mercer's significant commitment to Perennial Better Future is a vote of confidence in our process and approach to sustainable investment.
During the last 12 months, the Perennial Better Future Trust has experienced strong growth in funds under management, which according to the firm is now at $220 million.
"It is a key goal of the trust to demonstrate that there is no performance trade-off investing in companies shaping a better future," Cottier said.
"Since its inception over four years ago, the Trust has delivered a +7.0% p.a. return net of fees, outperforming the S&P/ASX Small Ordinaries Accumulation Index benchmark by +5.1% p.a."
Source: Financial Standard