Perpetual ESG Credit Income Fund - Class A
The Fund aims to provide regular income and consistent returns by investing in a diverse range of income generating assets that meet Perpetual’s ESG and values-based criteria (For Wholesale Investors Only).
The Perpetual ESG Credit Income Fund (formerly Perpetual Ethical SRI Credit Fund) 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 ESG and values-based factors.
The Fund will not invest in issuers that derive a material proportion (5% or more) 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 (exploration and extraction)
- genetic engineering
- pornography
- animal cruelty (cosmetic testing)
For involvement in the production of tobacco, tobacco-based products, manufacture of nicotine alternatives and tobacco-based products and the development and production and maintenance of controversial weapons, a 0% revenue threshold is applied.
In addition to the above, issuers are also required to meet our ESG criteria which evaluates business conduct in relation to governance and how their practices impact society and the environment.
Sovereign issuers (governments) will be analysed on 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).
The Funds investment process takes an active and risk-aware approach by investing in a diversified core portfolio of liquid investment-grade credit securities that meet Perpetuals ESG and values-based criteria.
Perpetual believes these assets provide investors with protection in times of market stress. Perpetual seeks to enhance returns by taking on more risk (in terms of maturity, credit rating or subordination) when favourable market conditions are present.
The Fund can also invest in alternative income-generating assets such as infrastructure debt. For more details on Perpetuals ESG and values-based criteria see Environmental, social, governance and ethical factors in the Additional investment information section.
Derivatives may be used in managing the Fund.
| Assets | Range % |
| Sub-investment grade and non rated securities | 0 - 25% |
| Cash and investment grade securities | 75 - 100% |
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The ESG screen is the second screening stage, where issuers are scored on a broad range of environmental, social and governance criteria.
The negative and positive scoring criteria are outlined below.
Issuers are scored (both positively or negatively) on their approach to or involvement in the ESG criteria shown in the following table.
Issuers can receive negative scores for poor management of the ESG criteria listed below. They can also receive positive scores for strong management approaches to ESG criteria and/or making ESG commitments, such as the use of renewable energy and inclusive employee policies.
The criteria used for scoring issuers are not assessed uniformly, rather the weight of each criteria is based on the industry that the issuer is operating in. All issuer positive and negative scores are totalled and issuers that receive a negative overall score fail this screen and are excluded from investment.
Perpetual Group is a diversified financial services company which has been serving Australians since 1886 when it was established as a trustee company by a group of businessmen including Sir Edmund Barton, later to be Australia’s first Prime Minister. That trustee heritage – and the culture it created in putting clients first – is what makes Perpetual unique.
Over more than 135 years we have supported clients and communities through periods of great change and volatility, continuing to evolve to provide products and services to meet the changing needs of our clients. As a business, we have always had an unparalleled ability to look through the noise of the external environment to see detail and opportunities that others do not.
Today, we are an ASX-listed company (ASX: PPT) headquartered in Sydney, Australia, providing asset management, private wealth and trustee services to local and international clients. Our operations span Australia, Asia, Europe, the United Kingdom and the United States.
The recent acquisition of Pendal Group brings together two of Australia’s most respected active asset management brands to create a global leader in multi-boutique asset management with approximately A$200 billion in assets under management.
At Perpetual, we are, and have always been, committed to acting in the best interests of our clients and the communities we support to ensure a positive impact and help build a sustainable future. We aim to be the most trusted brand in financial services.
Vivek is Head of Fixed Income and joined Perpetual in 2004. He has over 28 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.
Richard 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 of 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 in Superannuation Management from ASFA.
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