Damien Cottier
Perennial Partners has announced the establishment of its next-generation sustainable investment business, Perennial Better Future Pty Ltd.
Perennial Better Future will develop and manage investment strategies that aim to generate strong, consistent returns while contributing to a better future.
The investment strategy includes the Perennial Better Future Trust, and the eInvest Better Future Fund (Managed Fund) (ASX:IMPQ). The business will also manage ESG initiatives across the Perennial group.
The new boutique investment firm will be led by Damian Cottier, Portfolio Manager, together with Emilie O’Neill, ESG and Equities Analyst, and George Whiting, who will head up the institutional and retail business development for the boutique. Perennial Partners’ broader distribution team and 15 investment analysts will provide additional support.
Anthony Patterson, Executive Director of Perennial Partners, said the Perennial Better Future business was born out of a passion for sustainable investment.
“The world of sustainable investment has made a 180-degree turn in the last 15 years. Today, an investment in a sustainable business contributing to a better future is far more likely to lead to better returns than investing in conventional businesses,” he said.
“Perennial Partners has developed a leading-edge capability in sustainable investment and this business has been four years in the making. It launches having proven its investment thesis that benchmark outperformance can be achieved by investing in companies that are contributing to the improvement of society.”
Since its inception in 2018, the Perennial Better Future Trust has returned 13.3% per annum. It has outperformed the S&P/ASX Small Ordinaries Accumulation Index by 6.2% per annum and the ASX 300 Accumulation Index by 5.6% per annum since inception to the end of March 2021.
The Perennial Better Future Trust is rated ‘Investment Grade’ by Lonsec and ‘Approved’ by Zenith. Zenith has also assigned the Trust a Responsible Investment Classification of ‘Impact’, its highest classification.
Damian Cottier said rather than merely choosing the most sustainable stocks within sectors, the strategy is predicated on finding companies that derive the majority of revenue from positive outcomes, with zero revenue from harmful activities.
“We are focused on finding innovative smaller Australian companies. Many of the companies in the portfolio have entered into global markets and have significant growth potential – they are often disruptors in their chosen markets, improving health outcomes, increasing efficiency and reducing costs,” he said.
“We have been pleased to play a role in driving these positive outcomes further by participating in capital raises to support the growth of these companies.”
Cottier added that the launch of Perennial Better Future Pty Ltd provided a new opportunity for Australians to invest for ESG impact.
“With the help of the financial advice community, we look forward to bringing a means for everyday investors to contribute to a better future by investing in companies that are helping to solve some of society’s biggest challenges,” he concluded.