Perennial Partners has announced the establishment of its new sustainable investment business, Perennial Better Future, which will develop and manage investment strategies and will manage environmental, social, governance (ESG) initiatives across the Perennial Group.
The new boutique investment firm would be led by Damian Cottier, portfolio manager, together with Emilie O’Neill, ESG and equities analyst, and George Whiting, who would head up the institutional and retail business development for the boutique.
At the same time, Perennial Partners’ broader distribution team and 15 investment analysts would provide additional support.
The investment strategy would also include the Perennial Better Future Trust, and the eInvest Better Future Fund, the firm said.
According to Anthony Patterson, executive director of Perennial Partners, 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 returned 13.3% per annum, having 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 firm said.
Cottier said that the launch of Perennial Better Future provided a new opportunity for Australians to invest for ESG impact.
According to Cottier, rather than merely choosing the most sustainable stocks within sectors, the strategy was predicated on finding companies that derive the majority of revenue from positive outcomes, with zero revenue from harmful activities.