Nathan Hughes
Perpetual’s Ethical SRI fund (the fund) has recently celebrated 20 years since inception, with approximately $900 million in funds under management[1] now invested in quality shares of Australian ethical and socially responsible companies.
The fund was the first in what is now a suite of ESG investment strategies that sit within Perpetual Asset Management Australia.
Commenting on the milestone, Portfolio Manager Nathan Hughes said: “Twenty years ago ethical investing was in some respects a ‘boutique’ investment philosophy in Australia.
“While investors were cognisant of environmental and governance matters associated with a particular company, social issues such as modern slavery and ethical sourcing are now also very much front-of-mind and is something that must be considered in any ethical investment.”
Research conducted by Perpetual last year showed 25% of Australians try to invest in companies that are not harmful to the environment and society, and 24% of Australians are actively looking to invest in companies that are beneficial to the environment and society[2] .
The Ethical SRI fund aims to provide long-term capital growth and regular income through investment in quality shares of ethical and socially responsible companies.
The fund will not invest in companies that derive a material proportion (5% or more) of their revenue from the manufacture or sale of generally ethically unacceptable products and services.
“We have a robust ethical screening process that, when combined with our bottom-up, value-based approach that is fundamental to all Perpetual investments, enables us to build a portfolio that marries the growing investor appetite for ESG investing while seeking returns that outperform the benchmark over the long term.”
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