Diversified funds management provider, Pengana Capital Group, says growing interest in ethical and sustainable impact investment strategies among sophisticated and high net worth investors has had a tangible effect on funds under management.
The Pengana WHEB Sustainable Impact fund more than tripled funds under management across the 2021 calendar year: FUM grew from $88.35 million at 31 December 2020 to $286.84 million at 31 December 2021.
The fund also delivered 20.9% net returns for the year to 31 December 2021.
Russel Pillemer, Pengana Capital chief executive, said investors were becoming more educated on how positive impact investments could combine investment returns with social and environmental benefits.
“More investors are looking for strategies which capitalise on the transition to low carbon and sustainable economies,” he said.
UK-based WHEB Asset Management LLP, which managed the Pengana WHEB Sustainable Impact fund, recently underlined its sustainability leadership credentials after being named the European Environmental, Social and Governance Manager of the Year in the Funds Europe Awards 2021.
According to WHEB: “To win this new award, a firm must convince the judges that it has set itself robust ESG [environmental, social and governance] targets and can demonstrate transparency in terms of how these are being met. This may be across one or all of the ESG components. Ultimately, the judges must genuinely trust the firm’s ESG credentials”.
Pillemer said the Pengana fund was the only way for Australian investors to access WHEB’s leading sustainable impact investment strategy.
“WHEB have an outstanding team which combines investment talent with great passion for what they are doing,” Pillemer said.
“They are a leader in sustainable investment and we are delighted to be in partnership with them to make their strategy available for our investors.
“As more and more managers jump on the ESG bandwagon, it’s important to identify strategies which have the track record over several market cycles, with transparent and robust frameworks in place, and who are able to quantify the outcomes of their investments, not only on a financial basis.”