The frictionless movement of assets is becoming a common feature of markets around the developed world, yet Australia remains a step behind. The ASX is in no mood to rush the move to T+1, however, after its calamitous attempt to implement distributed ledger technology.
It’s a dire situation for consumers but a massive tailwind for financial advisers. More people and more capital in the superannuation coffers than ever, with a stubbornly small number of advisers to service them.
Australian Ethical-backed “impact” investor leads green investment
Sentient Investment Group, spun-out of Impact Investment Group this week, and backed by leading Australian responsible investment firm Australian Ethical, is making major investments in the fast-growing renewable and green energy sectors.
Overseen by former NAB CEO Andrew Thorburn and run by Oliver Yates, the group manages a diversified renewable energy strategy and has recently launched its Forever Fund. After forming a partnership with the Tiverton Agricultural Investment Fund, the joint venture recently announced its first acquisition, a $6 million, 1,600-hectare land purchase in Western Australia.
The investment joins the $200 million already invested by Sentient and represents an expansion into the land regeneration sector, driven by the potential for carbon offsets and delivering real “impact,” while also seeking to generate a positive return.
The property, located near Albany, will be held forever, not farmed and ideally connected to nearby nature reserves to create ‘regional corridors’ for wildlife. This is opposed to the traditional method of buying up isolated blocks of land that can have little if any impact on the environment or nature, and which can take dozens of years to show any impact.
Sentient also announced an “innovative” capital investment with ZEN Energy, known as Zero Emissions Now. The investment or “capital solution” of $20 million will “enable ZEN to support the delivery of new solar and battery assets” that will support ZEN’s existing clients but also offer scope to expand its 100 per cent renewable energy offering.
Discussing the deal, ZEN Energy CEO Anthony Garnaut said: “ZEN Energy’s purpose is to lead communities into the zero-carbon world. This means doing things differently from how they have been done before in the energy industry. Our work with Sentient is another way that we can partner with forward-thinking organisations to deliver on the development of key renewable assets into the market.”
According to Lane Crockett, executive director, renewables, at Sentient Impact Group: “ZEN Energy Group is a leading, respected organisation that is driving this sector’s transformation. We were buoyed by the opportunity to work with a diversified, new energy company that is completely focused on accelerating government, commercial, and industrial sectors to clean energy,” he said.
Australian Ethical’s involvement with Sentient, beginning last year, is a “strategic opportunity” to partner with an aligned organisation “committed to using money as a force for good” said CEO John McMurdo.
