There was a sharp turn in market sentiment in September as investors responded to abruptly changing conditions. A significant rise in natural gas prices in Europe and global supply chain disruption drove fears of inflation. Power outages in China exacerbated the global supply chain turmoil. There were also concerns that a liquidity crisis for China Evergrande could cause ripple effects on emerging markets. Overall, the Fund returned -4.6% versus -3.0% for the MSCI World Index. While the Health and Cleaner Energy themes were relatively strong, the strategy saw underperformance from the Resource Efficiency and Wellbeing themes.
In this month’s commentary, Claire Jervis discusses how this year’s supply chain disruptions are much more than just a transitory pandemic-related phenomenon, being driven by extreme weather events, unprecedented (and growing) demand for climate transition technologies, and geopolitics.
We are thrilled that WHEB has won the Best Sustainable & ESG Fund Management Group of the Year (AUM under £20bn) category in Investment Week’s 2021 Sustainable & ESG awards.
||A.O. Smith||United States||Industrials|
||Agilent Technologies||United States||Health Care|
||Danaher||United States||Health Care|
||Icon||United States||Health Care|
||TE Connectivity||United States||Information Technology|
||Thermo Fisher Scientific||United States||Health Care|
|1 MTH||1 YEAR||3 YEARS P.A.||5 YEARS P.A.||SINCE INCEPTION P.A.|
|WHEB Sustainable Impact Fund||-4.6%||22.8%||13.0%|
|Strategy (partial simulation – see below)||14.3%||7.2%|
|MSCI World Total Return Index (net, AUD unhedged)||-3.0%||27.8%||13.2%||15.1%||7.3%|
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|VOLATILITY3||13.1%||NUMBER OF STOCKS||45|
Partner, Fund Manager
Partner, Head of Research
The Pengana WHEB Sustainable Impact Fund invests in companies with activities providing solutions to sustainability challenges. WHEB have identified critical environmental and social challenges facing the global population over coming decades including a growing and ageing population, increasing resource scarcity, urbanisation and globalisation. The Fund invests in companies providing solutions to these sustainability challenges 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). WHEB’s mission is ‘to advance sustainability and create prosperity through positive impact investments.’
|Harding Loevner International Fund||Axiom International Ethical Fund||Axiom International Ethical Fund (Hedged)||Australian Equities Fund|
|High Conviction Property Securities Fund||Global Small Companies Fund||WHEB Sustainable Impact Fund||Emerging Companies Fund|
|High Conviction Equities Fund||Pengana International Equities Limited (ASX: PIA)||Private Equity Trust (ASX: PE1)||Alpha Israel Fund|
1. From August 2017, performance figures are those of the Pengana WHEB Sustainable Impact Fund’s class A units (net of fees and including reinvestment of distributions). The strategy’s AUD performance between January 2006 and July 2017 has been simulated by Pengana from the monthly net GBP returns of the Henderson Industries of the Future Fund (from 1 January 2006 to 31 December 2011) and the FP WHEB Sustainability Fund (from 30 April 2012 to 31 July 2017). This was done by: 1) converting the GBP denominated net returns to AUD using FactSet’s month-end FX rates (London 4PM); 2) adding back the relevant fund’s monthly ongoing charge figure; then 3) deducting the Pengana WHEB Sustainable Impact Fund’s management fee of 1.35% p.a. The WHEB Listed Equity strategy did not operate between 1 January 2012 and 29 April 2012 – during this period returns are zeroed. The Henderson Industries of the Future Fund’s and the FP WHEB Sustainability Fund’s GBP net track record data is historical. No allowance has been made for buy/sell spreads. Past performance is not a reliable indicator of future performance. The value of the investment can go up or down.
2. The Fund incepted on 31 October 2007 as the Hunter Hall Global Deep Green Trust. The Fund was relaunched on 1 August 2017 as the Pengana WHEB Sustainable Impact Fund employing the WHEB Listed Equity strategy. This strategy was first employed on 1 January 2006 by the Henderson Industries of the Future Fund and currently by the FP WHEB Sustainability Fund.
3. Annualised standard deviation since inception.
4. Relative to MSCI World Total Return Index (net, AUD unhedged)
* For further information regarding fees please see the PDS available on our website.