Shares in Aussie fund manager Pengana Capital Group Ltd (ASX: PCG) are higher in afternoon trade, up 2.37% at $2.17. But, Pengana has had a topsy-turvy day on the share market, after opening slightly in the red before fluctuating up and down to its current share price. It has traded as high as $2.17 and as low as $2.09.
Meanwhile, S&P/ASX 200 Index (ASX: XJO) has beejn having a dissapointing day in the red today, currently down 0.55%
It seems that investors have had mixed feelings after the company released its monthly funds under management (FUM) growth. Whilst it was a short and sharp update, let's still take a quick look.
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What does the FUM release say?
In the 1 page FUM report, the company showed it has grown FUM by approximately 1.5% from October to November 2021.
In total, the firm now has $4.15 billion in managed funds, up from $4.0885 billion at the same time last month. Looking at the same comparison rolling into October this year, this is a greater step up in capital from $4.08 in FUM during September.
The announcement also follows a white paper compiled by the group last month that challenges assumptions on the effect of impact investing in secondary markets.
Pengana pushes back at the notion that secondary markets such as the share market are an appropriate domain for impact investing, as shares frequently change hands amongst owners and the companies involved don't directly profit from the sale or purchase of its shares.
It also questions the role of ESG investing and submits that it is more a function of managing risk versus "trying to get companies to be better corporate citizens".
Specifically, Pengana reckons that "ESG investing processes may indeed help to avoid risk…but this is not the same as reducing impact in the real world".
It says that "divesting a portfolio of carbon stocks is a good way to decarbonise a portfolio, but this divestment does little to decarbonise the economy".
Pengana also argues that divestment can have important socio-political ramifications but recognise that divestment itself will have little immediate effect on carbon emissions.
Whilst the report is in no way price-sensitive, it does give insight into the investment philosophies of the firm in this regard, plus some unique perspective on ESG investing.
Pengana Capital share price snapshot
Pengana shareholders have enjoyed an outsized return over the past 12 months to date. In that time, the share price has gained 34%, well ahead of the benchmark ASX 200's gain of around 10%.
This year to date, shares have rallied another 33%, once again leading the broad index, whilst also gaining another 8% in the last month.
