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Pablo Berrutti

Resource stocks and ESG considerations

By Pablo Berrutti | Head of Responsible Investment
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. Some of these ESG considerations include:

  • Environmental – treatment and disposal of toxic and material waste, management of other pollutants, land reclamation, biodiversity impacts, water, and greenhouse gas emissions.
  • Social - community relations, employee and community safety and public health risks, and indigenous rights.
  • Governance – sovereign risks, bribery and corruption, complexity from operating in a variety of jurisdictions or across resource types, and accurate and timely resource reporting.

Perpetual’s resources team, which includes one portfolio manager and two analysts, have long considered these risks as a natural part of investing in resource stocks. As ex-miners and geologists, the team bring practical experience to their investment decision making, and know that poor management of ESG risks can cost both money and lives.

In order to be more transparent about how the resources team manage these risks, we have added an appendix to our Responsible Investment (RI) policy that details our approach to considering ESG risks of resource stocks, the main issues considered and our main sources of information. The policy is available from the RI section of our website.

A peak at Oil Search

Paul Skamvougeras
By Paul Skamvougeras | Portfolio Manager

Paul is the Portfolio Manager for the SHARE-PLUS Long-Short strategy, the Pure Equity Alpha 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, 18 May 2012

Oil Search is an oil and gas exploration and development company that operates all of Papua New Guinea’s (PNG’s) productive oil and gas fields. There are a number of reasons why I like the stock. More »

Finding a GEM

Jack Collopy
By Jack Collopy | Portfolio Manager

Jack is the Portfolio Manager of the Smaller Companies strategy and an Analyst covering small cap companies across a range of sectors.

Jack joined Perpetual in November 2001 as an Investment Administrator and Equity Dealer. After four years, he moved into an Analyst role focusing on small cap industrial companies. Jack took on portfolio management responsibilities in June 2010.

Prior to joining Perpetual, Jack gained two years industry experience working in London as an Equities Dealer and Investment Administrator at both Salomon Smith Barney and Goldman Sachs Asset Management.

Jack has a Bachelor of Economics from the University of Sydney.

Wed, 16 May 2012

G8 Education Limited is the only child care centre operator listed in Australia (ASX code: GEM) and there are a number of reasons why I like the stock. More »

China: lost in transition

Theo Sofios
By Theo Sofios | Portfolio Manager, Multi Manager Funds

Theo joined Perpetual in June 2003 and is portfolio manager for Perpetual’s Select multi-manager funds. As portfolio manager, he is part of the team responsible for the Perpetual multi-manager investment process, including areas such as manager research and selection, portfolio construction and researching new opportunities across various asset classes. Prior to joining Perpetual, Theo was a portfolio manager for Optimix Investment Management multi-manager group. At Optimix he was responsible for Australian equity manager research and selection, portfolio construction and tactical asset allocation. Theo received a Bachelor of Business degree from the University of Technology Sydney in 1999 and completed his Masters in Applied Finance with Macquarie University in 2006.

Tue, 15 May 2012

During March 2012 members of Perpetual’s Multi Manager Investment Team travelled through China. The focus was on private market investments. In Hong Kong and Mainland China we visited a broad spectrum of private market fund managers, visited the outposts of our developed market private equity managers, toured commercial and residential property developments and, visited local subsidiaries of some western owned and listed companies. More »

Budget 2012 – losing interest?

Vivek Prabhu
By Vivek Prabhu | Senior Portfolio Manager - Strategy & Risk

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).

Mon, 14 May 2012

What did the 2012 federal budget mean for fixed income investors? More »

Our progress on responsible investment

Pablo Berrutti
By Pablo Berrutti | Head of Responsible Investment

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.

Fri, 11 May 2012

Perpetual today released its second annual Responsible Investment Report on Progress. Find out how we're tracking. More »

European socialists celebrate Bastille Day

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, 07 May 2012

Economic data and election results over the weekend have sparked a new round of concerns for global investors. More »

The news at News Corp

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 the Global Resources strategy. In the past he has managed the Smaller Companies strategy and 50% of the Industrial Shares 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.

Fri, 04 May 2012

Recently there’s been a lot of bad press about News Corp and the phone-hacking scandal that’s embroiled its UK newspapers. However despite this, we continue to favour the stock as the UK newspapers represent only a fraction of its overall business. More »

RBA cuts rates, All Ords cracks 4,500

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, 01 May 2012

The Reserve Bank of Australia (RBA) lowered its target cash rate by 0.5% to 3.75% today, which represented its first reduction in four meetings and the third reduction in its current easing cycle (which began in November 2011). More »

Not so dangerous Royal Wolf

Nathan Parkin
By Nathan Parkin | Portfolio Manager

Nathan is the Portfolio Manager for the Ethical SRI strategy and an Analyst, covering mainly small cap industrial companies across a range of sectors.

Nathan rejoined Perpetual in October 2010 as an Analyst, having previously spent six years with the company from 1997 to 2003 in relationship management and business development roles. In July 2011 he took on portfolio management responsibilities.

Nathan has 11 years experience outside of Perpetual, which most recently included a seven-year period with 452 Capital from 2003 to 2010. At 452 Capital he began as a Dealer, and after two years, moved into an Analyst role where he covered industrials, financials and small caps over the next five years. Nathan’s career in financial markets began in 1994 at the Australian Stock Exchange, where he was an Index Analyst.

Nathan has a Bachelor of Economics from Macquarie University, a Graduate Diploma of Applied Finance from FINSIA and is a Fellow of FINSIA.

Fri, 27 Apr 2012

Royal Wolf is a provider of portable container solutions to the resources, construction and manufacturing industries in Australia and New Zealand. It came to our attention in May last year when General Finance Corporation floated just under half the company on the Australian Securities Exchange. More »

Default stats - what do they tell us?

Greg Stock
By Greg Stock | Senior Portfolio Manager

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, 26 Apr 2012

Standard & Poor’s recently released their 2011 Annual Global Default Study and Ratings Transitions Report. Find out what we think the results suggest for investors. More »

Hybrids - debt or equity?

Vivek Prabhu
By Vivek Prabhu | Senior Portfolio Manager - Strategy & Risk

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, 18 Apr 2012

In the current investment environment, Australian investors are seeking high levels of consistent income. This pursuit for return on capital is evident from investors taking up almost $5 billion worth of corporate bonds and hybrid securities in the first quarter of the year. More »

Is the party over for retail 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.

Tue, 17 Apr 2012

There is a lot of debate within the property investment community about whether the party is over for retail property. Anecdotal evidence of the number of empty shops on your local shopping strip will definitely support this view. More »

What is concerning investors now?

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.

Wed, 11 Apr 2012

Global investor sentiment improved significantly in the new year as closure of the European Greek solution, combined with a massive liquidity injection from the European Central Bank (ECB) and signs of improvement in the US economy, prompted an extended period of ‘risk on’ in markets. However, more recently the continued disappointing European economic data combined with an end to the ECB’s liquidity injections (and the US Federal Reserve’s announcement that its often cited QEIII program had been suspended) saw the market’s four month rally peter-out fairly quickly. More »

Breville on the boil

Jack Collopy
By Jack Collopy | Portfolio Manager

Jack is the Portfolio Manager of the Smaller Companies strategy and an Analyst covering small cap companies across a range of sectors.

Jack joined Perpetual in November 2001 as an Investment Administrator and Equity Dealer. After four years, he moved into an Analyst role focusing on small cap industrial companies. Jack took on portfolio management responsibilities in June 2010.

Prior to joining Perpetual, Jack gained two years industry experience working in London as an Equities Dealer and Investment Administrator at both Salomon Smith Barney and Goldman Sachs Asset Management.

Jack has a Bachelor of Economics from the University of Sydney.

Thu, 05 Apr 2012

The share price of small electrical goods supplier, Breville, has made a stellar climb since the start of the year, especially since it issued an earnings update at the end of January. In February, it reported a strong H1 FY2011 net-profit-after-tax increase of 41%. More »

More worried about China or Spain?

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, 16 Mar 2012

There was quite a sharp market reaction to Chinese trade data this week. On Monday, China recorded its first trade deficit in 22 years. While this is a significant development, it is not so bad that it signals a major slowing underway in China. More »

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

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

Paul is the Portfolio Manager for the SHARE-PLUS Long-Short strategy, the Pure Equity Alpha 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 | Head of Responsible Investment

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 »

Investing in a changing climate

Pablo Berrutti
By Pablo Berrutti | Head of Responsible Investment

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 »

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.