Welcome to the Perpetual’s Investment Insights webinars hub, where our Portfolio Managers exclusively share insights on the funds they manage, discuss their views on markets, cover where they are seeing opportunities and the fundamentals are affecting investment portfolios today, talk about portfolio construction and much more.
Multi Asset - October 2019
Australian Equities - September 2019
Multi Asset - July 2019
Multi Asset - May 2019
Welcome to the Perpetual Adviser Hub Fund Resources section. Check out the range of collateral to help you with your clients, download fund profiles and get easy access to our key fund webpages for more details.
For your interest – and for sharing with your clients – we’ve selected some of our best thinking on markets, economics and individual securities.
Perpetual publishes a range of newsletters to give you and your clients more information on our flagship investment funds. Don’t forget to sign-up if you want to receive these newsletters automatically – and to sign up to our Investing Matters newsletter which pulls together our latest investment articles across the asset class range.
Read bi-monthly insights and updates from Perpetual’s investment experts on a range of topical investment themes.
This newsletter looks at stock picks of ethical and socially responsible companies, investment trends and market moves.
Keep up to date with the latest investment opportunities we see for the Perpetual SHARE-PLUS Long-Short Fund.
This newsletter covers the market, stocks and economic updates from the investment team of the Perpetual Pure Equity Alpha Fund.
Keep up to date with the latest microcap stock picks from the managers of Perpetual’s Pure Microcap Fund.
Find out more about the stock picks and strategy of Perpetual’s Pure Value Share Fund.
Read the Global Share Fund newsletter for stock and market commentary from Garry Laurence and his team.
Check out the Fund newsletter for market updates and fund insights into Perpetual’s Diversified Real Return Fund.
Vivek Prabhu, Portfolio Manager of the Perpetual Diversified Income Fund shares his latest investment insights and portfolio updates.
Hear from Thomas Rice, Portfolio Manager of Perpetual’s Global Innovation Share Fund about his latest stock picks and portfolio insights.
In this quarterly newsletter, I share the Fund's current key holdings, discuss portfolio activity over the recent months since my last update, and take a deep dive into a new stock - Ferguson Plc. I will also share my outlook on markets and what that means in terms of finding new investment opportunities for the Fund.
Since taking on responsibility for the management of the Perpetual Ethical SRI Fund on 1 April, Portfolio Manager Nathan Hughes has reduced the portfolio’s exposure to resources, whilst remaining disciplined in applying the proven Perpetual process for managing the Ethical SRI strategy: look for good quality businesses at attractive valuations that meet our disciplined ethical SRI investment approach.
Download the March newsletter to find out about the latest performance of the strategy, interesting themes that arose from the recent interim reporting season and our views on the potential impact of the upcoming federal election on ESG and the Fund.
In this newsletter edition we examine a key holding in the fund – Bega Cheese (ASX:BGA), we also discuss the September quarter performance and positioning of Perpetual’s Ethical SRI Fund.
The objective of the Perpetual SHARE-PLUS Long-Short fund is to use alpha generated from our long book and our short book to beat the market over the medium term. Over the recent past this has proven to be difficult for the SHARE-PLUS Long-Short fund. This has predominantly been due to what we haven’t owned rather than what we have. Given our short book and our high cash holding, we struggle to keep up with the market when the market is heading higher.
During the August reporting season, one trend that surprised us was the divergent reaction of certain stocks to weak results. In this newsletter we explore one stock where we observed the market focusing more on a positive long-term message from management rather than a soft FY19 result. We discuss our views on the likelihood of the company hitting long term targets and provide insights into how we view this company.
Both in Australia and globally we have seen a real step up in share buy-backs over the last few years. With the world awash with capital and interest rates continuing to fall, it becomes extremely tempting for boards and management to justify borrowing money at very low rates and using that capital to buy-back shares.
This month we examine what’s driving the recent share price strength for some of the strongest performing companies on the ASX – including Afterpay, Wisetech and Hub24 – and examine whether short term earnings, or the market re-rating the multiples on these stocks, or a combination of both is responsible for their significant growth. We also discuss our views on how these current valuations are being justified to investors, and consider what the market might look 10 years from now.
The objective of the Perpetual Pure Equity Alpha fund is to generate positive returns which are uncorrelated to the index. With this type of strategy one tends to look great when the market is down and terrible and when the market is booming, like it is now. With a high cash level, low interest rates and low volatility make this strategy challenging, however, we believe that with bond markets at extreme valuations and most long/short products long leaning, there are very few funds which are truly absolute in nature going forward.
A holding that has contributed positively to fund performance over the last quarter is Opticomm (ASX:OPC), one of Australia’s largest owner/operators of fibre infrastructure. We participated in Opticomm’s IPO in August on the back of the company’s impressive track record, strong organic growth outlook, solid balance sheet and a very compelling valuation.
In this newsletter we discuss a key holding in the fund People Infrastructure (ASX:PPE) and how it has contributed to the performance of the fund.
In this newsletter we discuss a key holding in the fund Enero Group (ASX:EGG) and how it has contributed to the performance of the fund.
The last quarter of 2018 was a turbulent one in markets, bring an end to a challenging year overall for value managers. The Fund fell -18.5% over the quarter, while the index was also down markedly, dropping -13.7% over the same period. Over the long term (since inception in September 2013) the Fund has generated 20.1% p.a. versus 5.3% p.a. for the S&P/ASX 300 Accumulation Index.
Through November we trimmed our holdings in some of the better performing stocks in the Fund such as Unibail-Rodamco-Westfield, Qube, Orora and the Commonwealth Bank of Australia. We continue to hold relatively large positions in each of these stocks, however we looked to raise cash for deployment into other opportunities. This sees the Fund’s largest position now as Graincorp (ASX: GNC).
We have written about this unconventional period of extreme global monetary policy before. Central banks are cutting rates aggressively around the world due to low inflation and the impact of the US led global trade wars, which is driving a manufacturing recession, most obvious in Germany.
The Australian equity market extended its rally into May with the S&P/ASX 300 Accumulation Index rising 1.7%. Unlike more recent months, returns at the sector level were quite disparate. Communication Services (+7.1%) was the strongest performing area of the market and this was largely driven by a strong showing from Telstra whose share price trended higher as the company continued to make progress on its long term strategic priorities
In this newsletter, we discuss the performance of the fund as well as key stocks contributing and detracting over the month.
In this newsletter we discuss a key holding in the fund Disney (NYSE:DIS) in which we have increased position in.
In this newsletter, we discuss a key holding in the fund in which we have increased in position - Siemens.
In this newsletter, we discuss two key holdings in the fund Huya and E Link holdings as well as share our long-term outlook.
The dichotomy between the performance of stocks that benefit from rising interest rates and those that are valued based on interest rates reminds me of 2016. Bank stocks are trading at record low valuations, similar to 2016 when everyone expected long term bond yields to remain at unprecedented low levels.
What a difference three months can make in sentiment and performance in equity markets. While the MSCI world index was down 11% for the December quarter, all these loses were made back in the March quarter.
2018 was a tumultuous year for equity markets. The MSCI world index finished down 11% for the December quarter bringing the annual return to 1.4%. The sharp sell-off in the December quarter is what we would call a healthy correction...
The Diversified Real Return Fund returned 1.1% (gross) in the September quarter. Over the past year the Fund has returned 5.8% (gross) and over the past 5 years the Fund has returned 5.6% (gross) per annum compared with the objective of 6.7% (CPI plus 5%) over rolling 5 years.
Multi asset portfolios continue to perform well underpinned by strong equity, credit and bond markets as central banks shift to an easier stance. Fundamental developments are much more mixed as the global economy has slowed notably with little sign of a reacceleration.
The past six months have provided a clear example of the Fund meeting a key investment objective, as returns were protected on the downside.
The Fund’s defensive strategies kicked in during the December quarter and added significantly to performance.
The global economic outlook is delicately poised at present. Growth has slowed notably and there are some signs that recession risks are increasing in the US with the yield curve inverting and the cyclical parts of the share-market under-performing. The unresolved trade war is also a key risk for the outlook.
Australia hasn’t been immune as global interest rates head ever lower and conventional monetary policy reaches its limits. Over recent months, the Reserve Bank of Australia (RBA) has publicly contemplated at what point and how they would implement unconventional monetary policy or quantitative easing (QE).
In an environment where investment return expectations are low and many defensive assets are expensive, investors are faced with either accepting lower returns or increasing their risk tolerance in order to maintain returns. We understand that investors who are making an allocation to fixed income are attracted by the defensive characteristics fixed income offers, including liquidity, low capital volatility and income.
Like many sports, a good defence is critical to winning the long game when it comes to investing. A good offence will get you on the scoreboard but a good defence will help you win the game. As strong as your offence is, if your defence is weak, you won’t get very far.
It’s now been well over a decade since the global financial crisis (GFC) began. The unprecedented policy response by central banks in response to the GFC was characterised by exceptionally accommodative monetary policy.