Perpetual's Trillium shutters two funds

Perpetual's Trillium Asset Management has terminated two sustainable funds that failed to reach their expected scale.

The Trillium ESG Global Equity Fund and Global Sustainable Opportunities Fund had about $16 million and $6.2 million respectively in assets at the end of September.

Perpetual Investment Management, as the responsible entity, told investors it was in their best interest that the two funds be wound up due to them "not attaining, or expected to attain, the scale required to operate sustainably and in a cost efficient manner."

The ESG Global Equity Fund, a wholesale managed fund, was incepted on 4 August 2020 and aimed to provide investors with long-term capital growth through investment in quality global shares using an integrated ESG approach. It also aimed to outperform the MSCI All Countries World Net Total Return Index (AUD).

This fund was based off the equivalent US retail fund that was launched in 1999.

The Global Sustainable Opportunities Fund was incepted at the same time, aimed to provide investors with long-term capital growth through investment in global companies driving the transition to a more sustainable economy. It tracked the MSCI World Net Total Return Index (AUD).

This strategy was based on its US equivalent, which was set up in 2008.

The two funds were terminated on October 8 with investors receiving their funds about one week later.

The ESG-focused fund manager, which aims to "advance humankind towards a global sustainable economy," has about US$5.3 billion in assets under management.

Perpetual acquired the US fund manager based in Boston in 2020 for $63.8 million.

The parent company recently reported $9.6 billion in net outflows during the September quarter, weighing on funds under management. The corporate trust division, meanwhile, reached a record $1.4 trillion in funds under administration.