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Matthew Sherwood

Should the RBA cut rates?

By Matthew Sherwood | Head of Investment Market Research
Thu, 15 Mar 2012

Should there be some political pressure applied to the RBA to lower interest rates and reduce pressure on the Australian dollar?
Some political pressure has already been applied to reduce the cash rate, with the aim of lowering the Australian dollar. Fortunately, both major political parties are against this. One of the core contributing factors to Australia's 20 years without recession is the maintenance of low inflation. To abandon this target in favour of exchange rate targets (which is what the suggestion virtually is) would reverse 20 years of successful economic management and deliver very little in terms of improved economic prospects. The Australian dollar has long been viewed as a commodity currency and it remains elevated because the price of our exports is at 150 year highs (in real terms) and US interest rates are at all-time lows. Despite the Australian dollar more than doubling relative to the US over the past 12 years, our manufacturing, tourism, education and other export-based sectors have performed quite well. In the wake of our biggest mining boom in 150 years (mining investment well above trend), other sectors naturally have to grow below trend to balance the economy. To have all sectors growing strongly would reinstate the boom-bust cycle we have spent 20 years preventing.

How much is the Australian stock market looking to the Eurozone and how much is the politics driving market sentiment here?
It is clear that developments in Europe, the US and China have been driving sentiment in Australia over the past year. While Europe has stabilised and the US is looking better, the market remains at the top of its trading band. This trend has been reinforced by what can only be described as a lacklustre reporting season in February. This sort of environment has highlighted the importance of each companies' 'quality' in terms of balance sheet, earnings capacity and management. The key going forward remains income and income growth. These are the companies our portfolio managers search for on a daily basis.

What is the probability of sovereign debt contagion in Europe triggering GFC II?
It is highly uncertain how far the sovereign debt problems in Europe will go in terms of impact on financial markets. However, what is certain is that global central banks and policy makers are much better prepared than what they were in 2007. One thing that authorities underestimated in 2008 when Lehman Bros collapsed, was the degree of panic in the markets. This fear was amplified by actions of the US Congress, which voted against rescue measures recommended by the Federal Reserve Bank. Fortunately, this episode gave us an indication of what not to do during a period of elevated stress. It's impossible to predict the degree of panic in markets, but being better prepared and knowing more than we did in 2007 should greatly reduce, but not eliminate these risks.

This information has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535, AFSL 234426. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. The views expressed in this article are the opinions of the author at the time of writing and do not constitute a recommendation to act. Any information referenced in the article is believed to be accurate at the time of compilation and is provided by Perpetual in good faith. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor's capital.

Should the RBA cut rates?

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Thu, 15 Mar 2012

Should there be some political pressure applied to the RBA to lower interest rates and reduce pressure on the Australian dollar? More »

The default you have when you’re not having a default

Thomas Choi
By Thomas Choi | Assistant Portfolio Manager / Credit Analyst CFA B.Ec

Thomas joined Perpetual in March 2008 and joined the credit team in May 2010.

Thomas’ focus is on cash dealing and management of liquidity within portfolios.  He also supports Perpetual’s TAA process which includes quantitative analysis and sector rotation, as well as analytical support for our Credit Scoring process. 

Thomas’ most recent role was within Perpetual’s Research and Analytics Team. In this role he was dedicated to supporting the Credit Team, provision of investment analytics such as attribution and portfolio analysis, and the active asset allocation process for Perpetual’s balanced funds.

Thomas comes from an investment management background having previously worked in a number of investment roles, including time at the hedge fund manager Prodigal as an Investment Analyst, and CMC Markets where he was a dealer on the trading desk.

Fri, 09 Mar 2012

Could this really be the beginning of the end for the Greek debt problem that has plagued financial markets for the past three years? More »

Should investors look at the small picture?

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Mon, 05 Mar 2012

This week's economic data in Australia has confirmed what Australia's company reporting season has been telling us; there is only modest growth momentum in both the economy and earnings at present. More »

Retail therapy

Paul Skamvougeras
By Paul Skamvougeras | Portfolio Manager, BEc, CA

Paul is the Portfolio Manager for the SHARE-PLUS Long-Short strategy and the Concentrated Equity strategy.

Paul rejoined Perpetual Investments in February 2010 as a Portfolio Manager, having previously spent seven years with Perpetual. He began his career with Perpetual in 1994 in a back office role, moving into a dealing role after three years, working his way up to the Head Dealer role.

Between stints at Perpetual, Paul spent seven years working at CPH/Ellerston Capital, where he had portfolio management responsibilities for an Australian long/short strategy for the first four years and a global long/short strategy for the last three years.

Paul has a Bachelor of Economics from Macquarie University and is a Member of the Institute of Chartered Accountants.

Fri, 02 Mar 2012

Over the past few weeks I’ve met with quite a few CEOs and CFOs who have described their operating environment as ‘challenging’. This has particularly been the case for companies in the Retail, Media and Building Materials sectors. However, even in those sectors ‘doing it tough’, there are some companies that are doing well. More »

Resource stocks and ESG considerations

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Mon, 27 Feb 2012

Environmental, social and corporate governance (ESG) risks can have a more dramatic impact on stocks in the resources sector than in other sectors. However, despite high profile environmental disasters, like the Ok Tedi mine in Papua New Guinea or the oil spill in the Gulf of Mexico, a broad range of ESG risks can have less publicised, but material implications for long term company performance. More »

RMBS missing in action

Thomas Choi
By Thomas Choi | Assistant Portfolio Manager / Credit Analyst CFA B.Ec

Thomas joined Perpetual in March 2008 and joined the credit team in May 2010.

Thomas’ focus is on cash dealing and management of liquidity within portfolios.  He also supports Perpetual’s TAA process which includes quantitative analysis and sector rotation, as well as analytical support for our Credit Scoring process. 

Thomas’ most recent role was within Perpetual’s Research and Analytics Team. In this role he was dedicated to supporting the Credit Team, provision of investment analytics such as attribution and portfolio analysis, and the active asset allocation process for Perpetual’s balanced funds.

Thomas comes from an investment management background having previously worked in a number of investment roles, including time at the hedge fund manager Prodigal as an Investment Analyst, and CMC Markets where he was a dealer on the trading desk.

Thu, 23 Feb 2012

Since Australia’s major banks started issuing covered bonds in recent months the domestic securitisation market has remained largely dormant. The generous margin offered by CBA of +175bps over the benchmark swap/BBSW in their inaugural domestic covered bond issue, resulted in a significant repricing of both the senior unsecured and securitised debt markets. More »

Drink and be merry

Matt Williams
By Matt Williams | Head of Equities

Matt is Head of Equities and responsible for the strategic direction of the equities business and oversight of all investment strategies. He also provides support and mentoring to the analysts and portfolio managers in the team. Matt is the Portfolio Manager for the Australian Share strategy, the Pure Value Share strategy and 50% of the Industrial Share strategy. In the past he has managed the Smaller Companies strategy.

Matt joined Perpetual Investments in August 1993 as an Equities Dealer, before becoming an Analyst in 1997 and Portfolio Manager in 1998.

Prior to joining Perpetual, he worked as a Board Broker on the Australian Option Market and as a Cash/Bills Dealer at Lumley Corporation.

Matt has a Bachelor of Economics from the University of New England.

Wed, 22 Feb 2012

In what has so far been a fairly lacklustre reporting season, one highlight has been the profit result of Treasury Wine Estates. Over the first half of the financial year, the company achieved EBIT (earnings before interest and tax) growth of 18%, on a constant currency basis and its profits from sales into Asia were up 67%. More »

Company reporting season key for sentiment

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Fri, 17 Feb 2012

Australia is in its third year of earnings recovery post the GFC and while Australian stocks remain well-capitalised on the whole, local economic data, along with the strong Australian dollar and continued Eurozone uncertainty, are likely to culminate in low single-digit earnings growth throughout FY12. More »

The good news about increasing bank rates

Greg Stock
By Greg Stock | Portfolio Manager/Credit Analyst, B.Comm (Acc & Fin), ICAA, SIA, AFMA

Greg has been Portfolio Manager/Credit Analyst since joining Perpetual in August 2004. He is responsible for running the weekly credit process, researching non-structured issues (eg corporates, banks, infrastructure) and trades fixed rate securities.

Greg has over 14 years industry experience and prior to joining Perpetual worked at Macquarie Bank in financial operations, debt markets research and fixed income investment management. Prior to that he worked as an accountant at PriceWaterhouseCoopers.

Thu, 16 Feb 2012

The RBA has kept its Cash Target Rate at 4.25%. Despite this, banks have increased their lending rates to partially reflect the elevated funding costs they are incurring. Is there any good news in this story? More »

Responsible investment terminology 101 - Part 3

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Mon, 13 Feb 2012

Product focused terminology: RI screening, negative screens, positive screens and the best of sector. More »

Timeo danaos et dona ferentes

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Fri, 10 Feb 2012

There is an old Latin phrase, 'timeo danaos et dona ferentes', meaning 'beware of Greeks bearing gifts' which had its origin in the tale of the Trojan Horse. Today, there may be a new saying 'beware of Greeks taking back gifts' following an agreement by Greek political leaders overnight to take new austerity measures allowing access to Europe's €130 billion aid package. More »

Bank hybrids - time to take cover?

Vivek Prabhu
By Vivek Prabhu | Portfolio Manager/Credit Analyst, B.Bus (Acc & Fin), ICAA, SIA, MBA

Vivek has been Portfolio Manager/Credit Analyst since joining Perpetual Investments in August 2004 and is responsible for credit analysis, portfolio construction and trading.

Vivek has over 15 years industry experience and prior to joining Perpetual worked for eight years at Macquarie Bank as an Analyst, Compliance Manager, Assistant Portfolio Manager (Fixed Interest & Currency) and Credit Analyst. Prior to that he spent four years as an accountant/auditor at Coopers & Lybrand (PwC).

Thu, 09 Feb 2012

In January, the Commonwealth Bank of Australia (rated AA-) executed the first domestic covered bond issue by an Australian bank. Whilst foreign banks have been issuing covered bonds for many years, the Australian Parliament only recently passed legislation allowing domestic banks access to this funding alternative. More »

An inconvenient truth

Thomas Choi
By Thomas Choi | Assistant Portfolio Manager / Credit Analyst CFA B.Ec

Thomas joined Perpetual in March 2008 and joined the credit team in May 2010.

Thomas’ focus is on cash dealing and management of liquidity within portfolios.  He also supports Perpetual’s TAA process which includes quantitative analysis and sector rotation, as well as analytical support for our Credit Scoring process. 

Thomas’ most recent role was within Perpetual’s Research and Analytics Team. In this role he was dedicated to supporting the Credit Team, provision of investment analytics such as attribution and portfolio analysis, and the active asset allocation process for Perpetual’s balanced funds.

Thomas comes from an investment management background having previously worked in a number of investment roles, including time at the hedge fund manager Prodigal as an Investment Analyst, and CMC Markets where he was a dealer on the trading desk.

Wed, 01 Feb 2012

If you are wondering whether the banks will pass on any future rate cuts, you should first ask whether they actually can. More »

Responsible investment terminology 101 - Part 2

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Tue, 24 Jan 2012

ESG Engagement refers to the process of encouraging changes or improved practices from a company in relation to particular ESG risks, opportunities or issues. Engagement can take many forms from meeting with company management or boards; or the company’s advisors. It can be done in person, via teleconferences, in writing, or in extreme cases can be more publically aired. More »

European ratings downgrades offsets improving US outlook

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Mon, 16 Jan 2012

Global investor sentiment improved in December 2011, as a lack of new developments in Europe prompted investors to focus on the improving nature of US economic data, which continues to indicate that a double dip recession should be avoided and that confidence is gradually improving. The positive US economic data has been supported by a good start to the earnings season. More »

Responsible investment terminology 101

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Tue, 10 Jan 2012

Financial services comprises many specialities, often with their own language and acronyms. In one respect it is a natural part of specialisation, but unfortunately the language and acronyms can exclude others from both inside and outside the industry. Responsible investment (or RI (case in point)) is no different. This three part series aims to provide explanations of the RI terms and acronyms commonly used in financial services. More »

2011: A year of surprises

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Mon, 19 Dec 2011

If there were two words which described 2011 from an investment perspective it would be ‘highly unpredictable’. Investors entered 2011 with the global economy growing at 5%, investors were confident and the All Ordinaries Index rose to a three-year high (5,064) in April. As the year draws to a close, the Australian sharemarket has de-rated in sync with its global peer, with the 20 major markets down, despite earnings per share rising in 17 of these countries. More »

The effects of retail spending patterns on property

Anthony Cay
By Anthony Cay | Portfolio Manager, Property Securities

Anthony is the Portfolio Manager for the Property Securities strategy and Property Income strategy, as well as the Analyst covering Australian and Asian listed and unlisted property trusts.

Anthony joined Perpetual in December 1996 as a Trust Officer in the Private Clients business. From 2003 to 2006, Anthony worked as a Quantitative Analyst, running the Passive Property Fund.

In 2006, Anthony transferred into the Equities team as an Analyst, where he covered property trusts, and the healthcare, information technology, consumer discretionary, industrials and financials sectors. In 2008, Anthony became dedicated solely to property, taking on portfolio management responsibilities.

Anthony has a Bachelor of Economics from Macquarie University and is a Certified Financial Analyst.

Thu, 15 Dec 2011

Following the recent interest rate cuts by the RBA, this article explores what’s happening to retail spending and the knock-on effects for retail property landlords. More »

Fixed Income Update - Australia holding up strong

Perpetual Fixed Income and Credit Team
By Perpetual Fixed Income and Credit Team

Perpetual Fixed Income and Credit Team

Wed, 14 Dec 2011

November proved to be another challenging month for credit investors with the continuation of European political and economic events at the centre of the focus. Policy challenges and a series of downgrades in sovereigns and corporates continued to weigh heavily on market confidence. This was evident as confidence in Germany as the pillar of strength in the European debt crisis was shaken when it failed to sell all its government bonds put up for auction in November. The S&P/ASX 300 Accumulation index reflected the weak outlook with a return of -3.4% for the month. More »

Australia leads the way in sustainable buildings

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Tue, 13 Dec 2011

When considering environmental, social and governance (ESG) issues we often focus on downside risks, but given the season it is a good to time to reflect on some ESG opportunities and good news stories from 2011 on the climate change and energy front. More »

Investment grade corporate bonds - the next safe haven?

Vivek Prabhu
By Vivek Prabhu | Portfolio Manager/Credit Analyst, B.Bus (Acc & Fin), ICAA, SIA, MBA

Vivek has been Portfolio Manager/Credit Analyst since joining Perpetual Investments in August 2004 and is responsible for credit analysis, portfolio construction and trading.

Vivek has over 15 years industry experience and prior to joining Perpetual worked for eight years at Macquarie Bank as an Analyst, Compliance Manager, Assistant Portfolio Manager (Fixed Interest & Currency) and Credit Analyst. Prior to that he spent four years as an accountant/auditor at Coopers & Lybrand (PwC).

Fri, 09 Dec 2011

Traditionally, cash and sovereign bonds have been considered investment safe havens. Following the GFC, the safe haven status of traditionally “risk free” sovereign bonds is being questioned, with domestic corporate bonds now providing a more attractive solution for investors. More »

Food glorious food

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Thu, 08 Dec 2011

Before getting into the investment implications of differing food scenarios, it is important to start with some context. More »

RBA eases rates again

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Tue, 06 Dec 2011

The RBA lowered the official cash rate for the second consecutive month by 0.25% down to 4.25%. The accompanying statement by the RBA was fairly in line with what they said after the November easing; citing a weakening global picture, lower commodity prices and easing inflationary pressures globally for the decision. More »

Integrated reporting

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Tue, 29 Nov 2011

How companies communicate to their stakeholders and in particular shareholders has been a moving feast for many years. Every corporate disaster brings new regulations which seek to Band-Aid reporting deficiencies but instead have tended to produce more boiler-plate, compliance related disclosures which make useful information more rather than less difficult to find. In the 1950s annual reports could be as brief as 10 pages whereas now they are often over 100 – How much better an understanding of companies have those disclosures given us? More »

European policy measures fail to inspire confidence

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Fri, 25 Nov 2011

Since the last update, global investor sentiment initially recovered in October as the announcement of Europe’s ‘comprehensive solution’ buoyed market confidence. This resulted in most European markets recording 20%+ price gains (see Table 1) as investors sought to buy seemingly undervalued companies. More »

Money markets: The canary in the coal mine?

Thomas Choi
By Thomas Choi | Assistant Portfolio Manager / Credit Analyst CFA B.Ec

Thomas joined Perpetual in March 2008 and joined the credit team in May 2010.

Thomas’ focus is on cash dealing and management of liquidity within portfolios.  He also supports Perpetual’s TAA process which includes quantitative analysis and sector rotation, as well as analytical support for our Credit Scoring process. 

Thomas’ most recent role was within Perpetual’s Research and Analytics Team. In this role he was dedicated to supporting the Credit Team, provision of investment analytics such as attribution and portfolio analysis, and the active asset allocation process for Perpetual’s balanced funds.

Thomas comes from an investment management background having previously worked in a number of investment roles, including time at the hedge fund manager Prodigal as an Investment Analyst, and CMC Markets where he was a dealer on the trading desk.

Wed, 23 Nov 2011

In light of the current market conditions, I thought it would be interesting to comment on some of the developments currently re-emerging in the money markets. The money market is a subsection of the larger debt market and is known to be the deepest and most liquid. Within the money market, financial firms and corporates engage in borrowing and lending of billions of dollars through short term loans. More »

Business and human rights

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Tue, 22 Nov 2011

Over the last fifty years a number of international covenants (e.g. International Bill of Human Rights) have been developed, helping to define human right and how these should be protected. The role of business in respecting human rights has been, until recently, less clear. More »

The timing of more rate cuts? Not even the RBA knows

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Fri, 18 Nov 2011

In November 2011, the RBA followed the lead of its Brazilian, Singaporean and Indonesian peers and eased rates (for the first time in 31 months). Much of the subsequent market debate has centred on how much further rates might be reduced, if at all. The futures market has priced in a 100% chance of another two 0.25% rate cuts (and an 81% chance of three rate cuts) by February 2012. More »

Covered bonds: What’s all the fuss about?

Greg Stock
By Greg Stock | Portfolio Manager/Credit Analyst, B.Comm (Acc & Fin), ICAA, SIA, AFMA

Greg has been Portfolio Manager/Credit Analyst since joining Perpetual in August 2004. He is responsible for running the weekly credit process, researching non-structured issues (eg corporates, banks, infrastructure) and trades fixed rate securities.

Greg has over 14 years industry experience and prior to joining Perpetual worked at Macquarie Bank in financial operations, debt markets research and fixed income investment management. Prior to that he worked as an accountant at PriceWaterhouseCoopers.

Wed, 16 Nov 2011

Covered bonds have been the latest buzz topic in the media following the release of new legislation (passed on 13 October 2011) which now enables Australian financial institutions to issue these securities. Up until now, covered bonds could only be issued in Australia by overseas institutions. So what are covered bonds and what is all the fuss about? More »

Investing in a changing climate

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Tue, 08 Nov 2011

Some interesting climate news over the weekend, with US Department of Energy estimating that global CO2 emissions for 2010 increased by a massive 6% over 2009 making it a record year both in the pace of the increase and total emissions. We have also seen a number of studies recently which use statistical analysis to explore links between some weather events and climate change including the 2010 Russian heat wave, increased risk of extreme rainfall in the northern hemisphere and English floods in 2000. More »

Corporate governance unlocking value: The case with Washigton H. Sol Pattinson (SOL)

Pablo Berrutti
By Pablo Berrutti | Manager Responsible Investments and Sustainability

Pablo is responsible for the design, implementation and maintenance of Perpetual’s Responsible Investment Framework. Pablo chairs the Investor Group on the Climate Change Research working group, and is a member of both the Low Carbon Finance and the Financial Services Council ESG working groups.

Prior to this role, Pablo joined Perpetual in 2007 as a Risk Manager in the Risk Group and has over nine years financial services industry experience.

Pablo has a diploma of superannuation and a certificate IV in financial planning. He is in the process of completing a graduate certificate in sustainability with the Harvard extension school.

Mon, 14 Nov 2011

Corporate governance is the set of processes, rules, and structures by which a company is operated, regulated and controlled. More »

Lack of leadership reignites market jitters

Matthew Sherwood
By Matthew Sherwood | Head of Investment Market Research

Matthew is Perpetual Investment’s Head of Investment Markets Research. In his role, Matthew conducts research on and acts as an external voice on the Australian and global economies, financial markets and portfolio strategies.

Matthew has extensive financial industry experience as an economist, investment strategist and central banker. Prior to joining Perpetual Investments in 2005, he worked as an Investment Research Manager at ING Investment Management and before that he was a Senior Economist with the Reserve Bank of Australia, where he gained significant experience in monetary policy formulation. Matthew has a Bachelor of Business from the University of Newcastle and a Masters Degree in Economics (Finance and Econometrics) from the University of Sydney.

Fri, 11 Nov 2011

After calming down over the past few weeks, global financial markets experienced renewed volatility this week due to political dithering in Europe. After the Greek Prime Minister backed away from a proposed referendum on economic reforms and resigned, the power transition needed to be seamless, but has been a comedy of errors. More »

Concentrated Equity Fund update

Paul Skamvougeras
By Paul Skamvougeras | Portfolio Manager, BEc, CA

Paul is the Portfolio Manager for the SHARE-PLUS Long-Short strategy and the Concentrated Equity strategy.

Paul rejoined Perpetual Investments in February 2010 as a Portfolio Manager, having previously spent seven years with Perpetual. He began his career with Perpetual in 1994 in a back office role, moving into a dealing role after three years, working his way up to the Head Dealer role.

Between stints at Perpetual, Paul spent seven years working at CPH/Ellerston Capital, where he had portfolio management responsibilities for an Australian long/short strategy for the first four years and a global long/short strategy for the last three years.

Paul has a Bachelor of Economics from Macquarie University and is a Member of the Institute of Chartered Accountants.

Thu, 10 Nov 2011

During October, markets reacted to the ongoing sovereign debt issues in Europe and the ‘rescue plan’ which was announced. Markets rallied strongly, with the S&P/ASX 300 Accumulation Index up over 7%. More »

Not all hybrids are created equal - the devil's in the detail

Vivek Prabhu
By Vivek Prabhu | Portfolio Manager/Credit Analyst, B.Bus (Acc & Fin), ICAA, SIA, MBA

Vivek has been Portfolio Manager/Credit Analyst since joining Perpetual Investments in August 2004 and is responsible for credit analysis, portfolio construction and trading.

Vivek has over 15 years industry experience and prior to joining Perpetual worked for eight years at Macquarie Bank as an Analyst, Compliance Manager, Assistant Portfolio Manager (Fixed Interest & Currency) and Credit Analyst. Prior to that he spent four years as an accountant/auditor at Coopers & Lybrand (PwC).

Wed, 09 Nov 2011

Hybrid securities blend characteristics of both debt and equity. Hybrids have been a popular method for SMSF’s and retail investors seeking above cash returns in their fixed income investments when making an allocation to defensive assets. But are hybrids truly defensive? More »

This information has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535, AFSL 234426. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. The views expressed in this article are the opinions of the author at the time of writing and do not constitute a recommendation to act. Any information referenced in the article is believed to be accurate at the time of compilation and is provided by Perpetual in good faith. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor's capital.