The Perpetual Ethical SRI Credit Fund aims to provide regular income and consistent returns by investing in a diverse range of income generating, ethical and socially responsible assets.
It provides investors with an active, diversified portfolio of high quality, floating rate, predominantly investment grade securities that have passed through a screening process based on ethical and socially responsible factors.
The Fund will not invest in issuers that derive a material proportion of their revenue from the manufacture or sale of generally ethically unacceptable products and services such as the following:
- alcohol
- gambling
- tobacco
- uranium and nuclear
- armaments (including weapons)
- fossil fuels (upstream)
- genetic engineering
- pornography
- animal cruelty (cosmetic testing)
In addition to the above, issuers are also subject to socially responsible investment (SRI) screening to evaluate business conduct in relation to governance and how their practices impact society and the environment.
Sovereign issuers (governments) will be analysed on environmental, social and governance (ESG) factors, based on a scoring system utilising research from external specialists. This may include, but is not limited to, considering any unethical practices such as corruption, rule of law and political instability of the sovereign.
The Fund also offers investors all the benefits of Perpetual’s proven investment philosophy and approach. When investing in debt, avoiding loss or default is critical. Perpetual aims to invest in stable, income generating assets that have a low likelihood of default. Our analysts screen out risks by applying quality filters to companies and selecting those with strong management, stable balance sheets, predictable earnings, industry leadership and low susceptibility to regulatory or event risk.
Perpetual is a signatory to the United Nations-supported Principles for Responsible Investment (PRI).
Features and Benefits
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A FUND FOR ETHICAL INVESTORS
Aims to provide investors a well-diversified portfolio of debt issued by ethical, socially responsible issuers that may match their personal social and ethical preferences.
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ROBUST SCREENING PROCESS
A strict ethical and socially responsible investment screening process aims to ensure the Fund invests in issuers that do not negatively impact society and the environment.
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QUALITY FLOATING RATE ASSETS
Potential to benefit from the higher income generated following a rise in interest rates due to assets not being locked into a fixed interest rate.
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DIVERSIFIED PORTFOLIO
The Fund aims to invest across a broad range of sectors and maturities.
Ethical SRI Credit Fund – Factsheet
Perpetual’s Ethical SRI Credit Fund is a floating rate credit fund that aims to provide regular income and consistent returns by investing in a diverse range of income generating, ethical and socially responsible assets.
Perpetual Ethical SRI Credit Fund
Pricing & Performance
Performance as at 30/09/2019
Returns as at 30/09/2019
| Growth % | Distribution % | Total % | |
|---|---|---|---|
| 1 month | -0.39 | 0.72 | 0.33 |
| 3 month | 0.17 | 0.72 | 0.89 |
| 6 month | 0.44 | 1.48 | 1.92 |
| 1 year | 0.31 | 2.91 | 3.22 |
| 3 year | -- | -- | -- |
| 5 year | -- | -- | -- |
| 10 year | -- | -- | -- |
Distributions
| Frequency | Quarterly |
| Cents per Unit | 0.724 |
| Reinvestment Price | 1.004 |
Fund Commencement Date
| June 2018 |
Fund Profile
Details & Fees
About this fund
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Fund Manager
Perpetual Investment Management Limited
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Asset Class
Cash and fixed income
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Suggested Length
3 years or longer
Investment Objective
Aims to provide regular income and consistent returns above the Bloomberg AusBond Bank Bill Index (before fees and taxes) over rolling three-year periods by investing in a diverse range of income generating, ethical and socially responsible assets.
Investment Approach
The Fund's approach to delivering returns and managing risk is through an active and risk aware investment process which invests in a diversified core portfolio of liquid investment grade credit securities. Perpetual believes these assets provide investors with protection in times of market stress. When the environment is supportive Perpetual seeks to enhance returns by taking more risk whether that be in maturity, credit rating or subordination. The Fund can also invest in alternative income generating securities such as infrastructure debt. This approach to portfolio construction is Perpetual's preferred method to deliver investors the highest possible risk adjusted returns.
In addition to the above investment approach, Perpetual utilises a strategy for screening ethical and socially responsible investments
(see Environmental, social and ethical factors and labour standards' on page 21 of the PDS).
Derivatives may be used in managing the Fund.
Investment Details
| Minimum Initial Investment | $25,000 |
| With Savings Plan | |
| Minimum Initial Investment | $25,000 |
| Monthly Minimum | $100 |
| Minimum Additional Investment | $2,000 |
Fees
| Entry | Nil |
| Exit | Nil |
| Management Fee (p.a.) | 0.70%. Refer to PDS for Management Costs. |
| Buy / Sell Spread | 0.1% / 0.1% |
Investment Guidelines
| Sub-investment grade and non rated securities | 0 - 25% |
| Cash and investment grade securities | 75 - 100% |
Distribution
| Quarterly |
| March 31, June 30, September 30, December 31 |
How to Invest
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Perpetual Wholesale Funds feature Perpetual’s leading investment management capabilities. They are designed for individual and wholesale investors, and super fund trustees, with $25,000 or more to invest. You can also invest through investor directed portfolio services.
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Making an investment
Review the Product Disclosure Statement (PDS) and related documents to ensure you understand how the fund works and the risks involved.Online Application
Mailing and application details address
Send your completed application & identification documents to:
Perpetual Wholesale Funds
GPO Box 4171, Sydney NSW 2001
> Customer Identification Requirements
All forms, offer documents and PDS’s can be found in Forms, PDS's and Offer Documents page in our Resources section.
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If you are an institutional investor
Please contact one of our institutional relationship managers or phone 1800 110 941.
Got a question?
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Vivek Prabhu
Head of Fixed Income
BBus, FCA, FFin, MBA, GAICDYears of experience: 26
Years at Perpetual: 14
Vivek is Head of Fixed Income, joining Perpetual in 2004. He has over 20 years of experience spanning accounting, finance, investments, governance and risk management. He has managed multi-billion dollar fixed income, credit and currency portfolios and his role involves credit analysis, trade execution and portfolio construction.
Previously, he spent nearly 8 years at Macquarie Bank in roles including Assistant Portfolio Manager (Credit, Global Fixed Interest and FX), Credit Analyst, Compliance Manager (Funds Management Group) and Operational Risk Analyst (Internal Audit). Prior to this, Vivek spent almost 4 years at Coopers & Lybrand (PwC) as an accountant / auditor.
He's aimed to give back to the communities, organisations and people with whom he's connected. Vivek joined the Board of The Deaf Society of NSW in 2011 and currently serves as Director and Treasurer. He joined Perpetual's Diversity Council in 2012, chaired by Perpetual's CEO. Since 2010, Vivek has regularly mentored university students, colleagues & finance industry professionals, leading the Fixed Income stream for Perpetual's Investment Analyst Program.
He was awarded the 2011 Financial Services Institute of Australasia (FINSIA) Hugh DT Williamson Performance Scholarship, an award recognising professional accomplishment, social responsibility and leadership. In 2011, he was also awarded a not for profit directors scholarship from the Australian Scholarship Foundation.
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Richard Morris
Head of Responsible Investments
BEc, GradDipAppFin, DipSuperMngtYears of experience: 27
Years at Perpetual: 7Richard manages Perpetual Investment's responsible investment (RI) framework. Richard facilitates the consideration of environmental, social and governance (ESG) factors in investment team research, decision-making and ownership practices, and is the custodian of RI/ESG investment screens on relevant products. Richard continues to ensure that Perpetual works to meet its commitments as a signatory to the United Nations Principles of Responsible Investment (UNPRI).
Richard joined Perpetual in August 2012, following 19 years experience in investment markets, research and consulting. This included 12 years at Constellation Capital Management, an Australian equities boutique manager. Initially covering dealing, client management and back office tasks, Richard's final role at Constellation was as a Senior Portfolio Manager, which included portfolio management and stock research. Earlier roles included fund manager research at ASSIRT and investment consulting and superannuation administration at Mercer.
Richard has a Bachelor of Economics from Macquarie University, a Graduate Diploma of Applied Finance from FINSIA (FINSIA Fellow) and a Diploma of Superannuation Management from ASFA.
