What can we help you find?
Search by Topic

Your search had no results

Please try the following to find what you’re looking for:

  • Check your spelling
  • Try different words or word combinations (E.g. "fund form")

Fast podcast: Hear about a Perpetual active ETF with ESG screens and charity donations

Download a PDF of this Article
Print this page

In our latest fast podcast, portfolio manager Nathan Hughes outlines the Perpetual ESG Australian Share Fund (ASX: GIVE)

ONE of Perpetual’s active exchange-traded funds allows investors to put their money toward companies that pass our values-based and ESG screening process – while also supporting charity. 

The Perpetual ESG Australian Share Fund (ASX: GIVE) screens out companies or issuers that derive a material proportion (5% or more) of revenue from activities like fossil fuel exploration and production, gambling and animal cruelty. 

In addition to investing in quality Australian shares that pass Perpetual’s values-based and ESG screens, the fund recently donated a portion of its performance fee to charity.

“It’s designed for people who like to invest in a particular way that aligns with their values,” says portfolio manager Nathan Hughes. 

GIVE is an active ETF which trades on the ASX, just like a share that can be bought and sold through any broker.

Every day, a “market maker” provides liquidity by buying and selling units so the active ETF always trades in line with its net asset value. 

Perpetual has a long-standing investment philosophy based around a set of quality filters, seeking out quality businesses with recurring earnings and strong balance sheets that are run by sound management teams.  

“But GIVE goes further — looking at what a company does and how it does it,” says Hughes. 

Two screening layers

The values-based and ESG screen has two layers: 

The values-based screen first screens out companies that derive 5% or more of gross revenue from a range of activities including alcohol, gambling or fossil fuel exploration or production. Businesses that derive any revenue from the production of tobacco or manufacture of controversial weapons (including nuclear armaments) are excluded completely.

(A full list of screened activities and revenue thresholds is available in the fund's PDS available at www.perpetual.com.au).

The ESG screen then reviews the remaining companies against a range of environmental, social and governance metrics, says Hughes. 

“It looks at a raft of different things of varying degrees of materiality, depending on what the company does and which industry they're in. 

“So, we might be looking at climate and emissions performance for one particular sector but take a social lens on another particular sector in terms of labour management or modern slavery. 

“Governance is all encompassing; we look at that for all of our different companies.” 

Companies are scored positively and negatively on these metrics to arrive at a single total score.

Those that receive a negative total score are not be considered for investment.

Unusually, the fund not only aims to provide returns for investors but also has a philanthropic component. 

Available via the ASX code GIVE

As a long-standing fund with more than 20 years of history, the ESG Australian Share Fund is now more accessible through the active ETF class under the ASX code GIVE.

“There  are two things unique to GIVE — a fee structure that has a lower management fee than the unlisted class and a performance fee component, and a proportion of that performance fee will be donated to charity. ” Hughes says. 

Listen to Nathan Hughes explain the fund in this fast podcast



About Perpetual ESG Australian Share Fund (ASX: GIVE)

GIVE is a unit class in the Perpetual ESG Australian Share Fund that is quoted and traded on the ASX as an active Exchange Traded Fund.

The Perpetual ESG Australian Share Fund is an actively managed fund, targeting long-term capital growth and income through investment predominantly in quality Australian shares which meet Perpetual’s ESG and values-based criteria.

Perpetual is a pioneer in Australian quality and value investing, with a heritage dating back to 1886.

We have a track record of contributing value through “active ownership” and deep research.

Find out about Perpetual ESG Australian Share Fund (ASX:GIVE)

Browse Perpetual’s Australian equities capabilities

Want to know more? Contact a Perpetual account manager

Nathan Hughes
Portfolio Manager, ESG Australian Share Fund, Income Share Fund
Nathan Hughes

Nathan Hughes

Portfolio Manager, ESG Australian Share Fund, Income Share Fund BCom, CFA

Years of experience: 18
Years at Perpetual: 12

Nathan is the Portfolio Manager for the Perpetual ESG Australian Share Fund and Income Share Fund, and an analyst.

Nathan joined Perpetual in September 2010 as a Research Analyst, before spending almost two years on the dealing desk at Perpetual working on all Australian Equity strategies as an Equities Dealer. Nathan was then appointed to the role of Equities Analyst covering small cap stocks in 2013. He was promoted to Deputy Portfolio Manager in May 2016, and took on responsibility for managing 50% of the Smaller Companies strategy in 2017.

Prior to joining Perpetual, Nathan spent 6 years in a Chartered Accountancy firm where he was responsible for the affairs of a diverse range of clients, including regular taxation compliance, financial reporting, Self-Managed Superannuation Fund audits and business advisory services.

Nathan holds a Bachelor of Commerce from the University of Wollongong and holds a Chartered Financial Analyst (CFA) designation.

This information has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535, AFSL 234426 as the responsible entity of the Perpetual ESG Australian Share Fund (Managed Fund) (ASX: GIVE) (referred to below as “active ETF”). It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. The product disclosure statement (PDS) for the Active ETF should be considered before deciding whether to acquire or hold units. The applicable PDSs and Target Market Determinations can be obtained by calling 1800 022 033 or visiting our website www.perpetual.com.au. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital.