The 9th annual Impact Report from the Pengana WHEB Sustainable Impact Fund (Titled: the Age of Adoption) represents yet another step forward in terms of quality and insight and underscores our clear intention to invest in companies that provide solutions to critical sustainability challenges, connecting our investors with a brighter, healthier future – for people and the planet.
In the Fund’s latest webinar, Seb Beloe, Partner and Head of Research as well as Associate Fund Manager Claire Jervis discuss the findings from WHEB’s 2022 Impact Report along with an update on the WHEB sustainable strategy.
- The Growth Factor, which underperformed significantly in 2022, has rebounded this year. The primary driver has been enthusiasm for artificial Intelligence (“AI”) enablers with Nvidia the primary beneficiary.
- The market rally is standing on “slender stilts” with 10 stocks accounting for ~50% of all YTD gains. 9 of those stocks are not investable as they do not meet our criteria of producing goods and services to address sustainability challenges. The 10th, Tesla, is concerning from an ESG perspective.
- Although the current beneficiaries of the of the AI frenzy largely fall outside the fund’s investable universe, many portfolio companies are implementing AI in meaningful ways.
- In the recent impact report, titled “The Age of Adoption” WHEB explained their approach to impact investing, advances in their methodology, and provided a worked example from their impact engine which highlighted the intentionality of the process.
- Carbon reduction (commitments and progress), engagement activity, and portfolio impact are all tracked and progress is reported.
CPD points applicable for Australian Financial Planners
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