Perennial Smaller Companies Sust Fut Tr (WPC5600AU) Report & Performance

What is the Perennial Smaller Companies Sust Fut Tr fund?

Perennial Smaller Companies Sustainable Future Trust aims to outperform the benchmark over the long term after fees and expenses, by investing in a diversified portfolio of smaller companies that conduct business taking into consideration environmental, social and governance (‘ESG’) criteria and/or conduct business in industries which have favourable characteristics having regard to ESG criteria.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Perennial Smaller Companies Sust Fut Tr

Perennial Smaller Companies Sust Fut Tr Fund Commentary September 30, 2023

Global equity markets were generally weak during September in response to rising bond yields and the benchmark was down 4.0% during the month. The Trust was down 4.4% after fees in September and underperformed by 0.4%.

The absolute and relative performance of the Trust was weaker in the September quarter after strong performance in the June quarter. A significant contributor to relative performance during the month and the quarter was the weak performance of the Healthcare sector, which the Trust is overweight and outperformance of the Energy sector which the Trust is underweight. There has also been some stock specific weakness, particularly in Calix. Despite these short term movements, we remain comfortable with the portfolio and assuming that bond rates do not increase significantly from current levels, our forecasts suggests that the portfolio is well positioned going forward. During the month we used the market weakness to add to positions and have reduced the cash weighting in the portfolio to around 5% which is the lowest level in some time.

Positive held contributors to relative performance during September included EQT Holdings (+2.9%), 3P Learning (+10.4%), Telix Pharmaceuticals (+3.1%) and Genetic Signatures (+17.2%).

Negative contributors to relative performance during the month included Calix (-26.6%), Sims (-11.8%), Alpha HPA (-30.5%) and 4D Medical (-32.8%).

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Perennial Smaller Companies Sust Fut TrWPC5600AUManaged FundsDomestic EquityAustralian Micro CapDomestic Equity - Micro Cap IndexASX Index Small Ordinaries Index2.59 M1.2%1.32%0.6%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Perennial Smaller Companies Sust Fut Tr1.45%2.39%2.48%-1.22%6.82%12.83%15.78%17.96%-14.08%-25.29%-28.96%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Perennial Smaller Companies Sust Fut TrDomestic Equity - Micro Cap Index-11.55%-1.22%NA%NA%NA%0.965.77%6.01%0.90.95

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Perennial Smaller Companies Sust Fut TrYes-https://perennial.com/-

Product Due Diligence

What is Perennial Smaller Companies Sust Fut Tr

Perennial Smaller Companies Sust Fut Tr is an Managed Funds investment product that is benchmarked against ASX Index Small Ordinaries Index and sits inside the Domestic Equity - Micro Cap Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Perennial Smaller Companies Sust Fut Tr has Assets Under Management of 2.59 M with a management fee of 1.2%, a performance fee of 1.32% and a buy/sell spread fee of 0.6%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Perennial Smaller Companies Sust Fut Tr has returned 1.45% in the last month. The previous three years have returned -1.22% annualised and 17.96% each year since inception, which is when the Perennial Smaller Companies Sust Fut Tr first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Perennial Smaller Companies Sust Fut Tr first started, the Sharpe ratio is NA with an annualised volatility of 17.96%. The maximum drawdown of the investment product in the last 12 months is -14.08% and -28.96% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Perennial Smaller Companies Sust Fut Tr has a 12-month excess return when compared to the Domestic Equity - Micro Cap Index of -11.55% and -1.22% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Perennial Smaller Companies Sust Fut Tr has produced Alpha over the Domestic Equity - Micro Cap Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Micro Cap Index category, you can click here for the Peer Investment Report.

What level of diversification will Perennial Smaller Companies Sust Fut Tr provide?

Perennial Smaller Companies Sust Fut Tr has a correlation coefficient of 0.95 and a beta of 0.96 when compared to the Domestic Equity - Micro Cap Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Perennial Smaller Companies Sust Fut Tr and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Perennial Smaller Companies Sust Fut Tr with the ASX Index Small Ordinaries Index?

For a full quantitative report on Perennial Smaller Companies Sust Fut Tr compared to the ASX Index Small Ordinaries Index, you can click here.

Can I sort and compare the Perennial Smaller Companies Sust Fut Tr to do my own analysis?

To sort and compare the Perennial Smaller Companies Sust Fut Tr financial metrics, please refer to the table above.

Has the Perennial Smaller Companies Sust Fut Tr been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Perennial Smaller Companies Sust Fut Tr?

If you or your self managed super fund would like to invest in the Perennial Smaller Companies Sust Fut Tr please contact via phone or via email .

How do I get in contact with the Perennial Smaller Companies Sust Fut Tr?

If you would like to get in contact with the Perennial Smaller Companies Sust Fut Tr manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Perennial Smaller Companies Sust Fut Tr. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - August 31, 2023

The benchmark gave back some of July’s gains during August, finishing down 1.3%. The Trust was down 3.5% after fees in August and underperformed by 2.2%.

The weak performance from the Trust was driven by a range of factors working against the portfolio. We remain comfortable with the positioning of the Trust and are becoming incrementally more positive from a broader market perspective as earnings expectations now seem more realistic after the recent reporting season.

Positive held contributors to relative performance during August included AUB Group (+7.5%), Australian Ethical (+8.7%), EQT Holdings (+3.7%) and G8 Education (+2.7%).

Negative contributors to relative performance during the month included Meridian Energy (-7.1%), PEXA Group (-12.8%), Genetic Signatures (-28.7%) and Iress (-38.3%).

Performance Commentary - July 31, 2023

The benchmark rose very strongly during July, up 3.5% as economic data suggested that the Reserve Bank of Australia may be closer to the end of the current interest rate tightening cycle. The Trust was up 1.1% after fees in July and lagged the rally given the relatively low exposure to cyclical stocks.

It is now over 5 years since the inception of the Trust and over this time the Trust has delivered a 8.1% p.a. return net of fees, outperforming the benchmark by 4.4% p.a.

Positive held contributors to relative performance during July included Australian Ethical (+23.2%), SmartGroup (+14.1%), Genetic Signatures (+16.2%) and Bendigo and Adelaide Bank (+8.8%).

Negative contributors to relative performance during the month included Integral Diagnostics (-7.6%), Sims Ltd (-4.1%), AUB Group (- 2.4%) and KMD Brands (-8.1%).

Australian Ethical delivered a better-than-expected quarterly update.

Smartgroup, which provides novated leases as part of its remuneration packaging business, was higher after comments from a smaller competitor that 36% of all novated leases delivered in 3Q23 and 45% of all novated delivered in June were electric vehicles.

Smartgroup is expected to benefit from similar trends following the introduction of government incentives for novated electric vehicles that was introduced in December 2022. Positively, for the nation’s greenhouse gas emission footprint, this suggests that the proportion of new vehicle sales that are powered by internal combustion engines and fossil fuels should start to decline at a faster rate.

Genetic Signatures delivered a better-than-expected quarterly update and indicated that, following delays, it expects to lodge the application for approval of the company’s next generation enteric (gastrointestinal) test during August.

Integral Diagnostics was weaker after Medicare data suggested that the recovery of diagnostic imaging volumes post-COVID continues to be softer-than-expected. Sims was weaker as global scrap metal prices were lower during the month and KMD announced a much weaker-than-expected trading update as a combination of a weaker consumer and warmer winter impacted sales.

At month end, the portfolio held 44 stocks and cash of 8.3%. At July end, the weighted average Perennial-derived Environmental, Social, Governance and Engagement (“ESGE”) Score of the Trust was 7.3 which is 29% higher than the benchmark ESGE Score of 5.7.

Performance Commentary - June 30, 2023

The Trust was up 2.3% after fees in June, outperforming the benchmark by 2.3%.

It is now over 5 years since the inception of the Trust and over this time the Trust has delivered a +8.0% p.a. return net of fees, outperforming the benchmark by 4.9% p.a.

Positive contributors to relative performance during June included AUB Group (+16.3%), Limeade (+229.2%), Sims Ltd (+10.9%) and Impedimed (+28.6%). Negative contributors to relative performance during the month included Pacific Edge (-79.7%), KMD Brands (-9.3%), 4D Medical (- 13.0%) and Telix Pharmaceuticals (-4.1%).

AUB was stronger after upgrading earnings and raising capital on attractive terms during May.

Limeade, which provides customised employee well-being programs to customers globally, received a takeover offer at a significant premium. This was a reasonable outcome for what has, in general, been a disappointing investment.

Impedimed made a number of significant announcements. The company’s SOZO device which is used to assess the risk of breast cancer survivors suffering from lymphoedema has achieved a number of key milestones in securing reimbursement from US health plans for SOZO tests. The process for securing reimbursement is necessarily fragmented given the large number of health plans in the US. The company has been seeking to secure reimbursement for several years and is now making significant headway after the process was mandated by the US National Cancer Care Network Survivorship guidelines in March. The most significant update during the month is that now over 80% of Michigan’s insured population has access to coverage for SOZO testing for lymphoedema. During the month, the company also announced the first published medical policy by Florida Blue, a significant insurer in the key state of Florida. Pacific Edge announced that US Medicare coverage of the company’s Cxbladder diagnostic tests is expected to cease in July. While it is not clear that the reasoning behind this administrative decision was made on a fully informed basis, the outcome was significantly worse than expected and will have a significant impact on the company’s business in the US in the short term. The impact on the portfolio was limited by the small position size. 4D Medical and Telix Pharmaceuticals gave up some of their recent gains.

At month end, the portfolio held 43 stocks and cash of 7.7%. At June end, the weighted average Perennial-derived Environmental, Social, Governance and Engagement (“ESGE”) Score of the Trust was 7.4 which is 29% higher than the benchmark ESGE Score of 5.7.

Performance Commentary - May 31, 2023

The benchmark was down 3.3% in May, giving up some of the recent gains. The Trust was down 2.5% after fees, outperforming the benchmark by 0.8%.

Positive contributors to relative performance during May included Telix Pharmaceuticals (+15.3%), Immutep (+13.2%), NIB Holdings (+9.5%) and Integral Diagnostics (+5.7%).

Negative contributors to relative performance during the month included G8 Education ( -14.3%), Impedimed (-24.3%), IDP Education ( -22.5%) and Sims (-9.3%).

Performance Commentary - April 30, 2023

The Trust was up 6.4% after fees during the month, outperforming the benchmark by 3.6%.

The benchmark finished 2.8% higher in April. Positive contributors to relative performance during April included Telix Pharmaceuticals (+47.1%), Impedimed (+76.2%), 4D Medical (+165.0%) and NIB Holdings (+9.5%).

Negative contributors to relative performance during the month included not held positions in Blackmores, Corporate Travel and Strike Energy, and our holding in PEXA (-1.6%).

Performance Commentary - March 31, 2023

During the month portfolio holding Janison announced that it had successfully delivered the nationwide NAPLAN (“National Assessment Program – Literacy & Numeracy) assessment. The assessment was delivered fully online across 9,300 participating primary and high schools across Australia. Janison has developed the online assessment platform for NAPLAN over the last seven years in partnership with Education Services Australia and Microsoft.

Janison’s platform delivered 4.4 million tests for 1.3 million students over a week. In a peak day, Janison delivered over 1 million tests and 0.3 million students sitting the exam simultaneously on Janison’s platform without issue. Janison also announced that it had been awarded a global agreement with Oxford University Press (“OUP”) to develop and deliver a range of new and existing assessment products globally. This follows the announcement last year that it had entered into a global partnership with Cambridge University Press & Assessment. OUP is the education publishing arm of Oxford University.

The products will be rolled out from 2024 and include tests for years 6 and 9 globally and using the same core Janison technology that has delivered NAPLAN.

Performance Commentary - February 28, 2023

The benchmark fell 3.7% during February and gave back some of its gains from January as interest rate expectations increased following better than expected economic data. The fund was down 0.9% after fees, outperforming the benchmark by 2.8%. It is now over 5 years since inception of the Trust and over this time the Trust has delivered a +7.6% p.a. return net of fees, outperforming the benchmark by 4.1% p.a. Positive contributors to relative performance this month included AUB Group (+17.4%), Steadfast Group (+11.3%), Alpha HPA (+17.6%), Smartgroup (+13.1%) and Sims (+4.7%). The key negative contributors to relative performance this month were Immutep (-18.6%), Integral Diagnostics (-14.1%) and Pexa Group (-2.5%).

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