Pengana WHEB Sustainable Impact Fund

Product Name

Pengana WHEB Sustainable Impact Fund

Issuer

Pengana Capital

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale

Certified Since

2017

Asset Classes

International equities

Markets

Australia, New Zealand

Investment Approaches

Sustainability themed, Impact investing

It Includes:

  • Riaa icons 14 Education
  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 11 Impact investments
  • Riaa icons 10 Renewable energy and climate change solutions
  • Riaa icons 15 Social and sustainable infrastructure
  • Tree green background Sustainable land and agricultural management
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water
  • Investment2 More sustainable companies

It fully excludes:

    Overview

    The Pengana WHEB Sustainable Impact Fund invests in a diversified global portfolio of companies with activities identified by WHEB as providing solutions to the challenges of sustainability. The Fund’s portfolio holds predominantly listed global equities. The strategy features active stock-picking with individual stocks being selected through a rigorous ‘bottom-up’ stock-by-stock fundamental research process. The Fund’s investment objective is to achieve capital growth over the medium to longer term. Pengana Investment Management Limited (Pengana) is the responsible entity of the Fund and has appointed WHEB Asset Management LLP as the investment manager for the Fund.


    Description


    Sustainability & Positive Screening: The Fund invests in a diversified global portfolio of companies with activities identified by WHEB as providing solutions to the challenges of sustainability via nine sustainable investment themes – five of these are environmental (cleaner energy, environmental services, resource efficiency, sustainable transport and water management) and four are social (education, health, safety and well-being).

    Impact Investing: WHEB produces an Annual Impact Report which measures, calculates and reports on the extent of positive social and environmental impact from investing in the strategy.

    ESG Integration: WHEB’s approach to ESG issues in their investment process is to consider these issues at all stages of analysis and as an integral part of an assessment of the quality of the business overall.

    Thresholds: To qualify for WHEB’s universe, companies need to have a market capitalisation of at least US$200m, and at least one third of profits or revenues directly exposed to WHEB’s themes. The decision to pick one third of revenues as a minimum threshold was reached after careful consideration; on the one hand the managers wanted to be able to include larger companies in transition who are in the process of adapting their business to a more sustainability-oriented economy.  On the other, they did not want to include companies who were making a token gesture towards becoming a sustainable solution provider without making significant commitment in terms of sales and R&D.  A third of a company’s sales is deemed an appropriate level to indicate genuine commitment, while still enabling the managers to capture revaluation from a company during a transitional phase. In practise the majority of holdings in the fund are 100% exposed to the themes, and the weighted average across the fund is over 80% exposure.

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    Pengana International Equities Limited (ASX: PIA)

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