In our latest fast podcast, portfolio manager Nathan Hughes outlines the Perpetual ESG Australian Share Fund (ASX: GIVE)
- Perpetual active ETF donates part of its performance fee to charity
- Find out about Perpetual ESG Australian Share Fund (ASX:GIVE)
- Fast podcast: Portfolio manager Nathan Hughes explains the GIVE fund
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.
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)
Want to know more? Contact a Perpetual account manager