November, 2020
The Fund returned +3.91% in November, comprising mostly capital growth after fees (with the only yield by way of an Amcor dividend). With November’s strong capital return approaching +4%, the spread between the Fund’s average protective collar ceiling and floor levels narrowed by month’s end to a potential return range of 14.0% between the highest and lowest possible outcome (17.3% prior month).
Over the remaining average life of the current collars, the Fund is now carrying potential price upside of +9.4% (+15.9% prior month) and downside of -4.6% (-1.4% prior month). Among the 9 stocks held in the portfolio, Regis Resources was the only detractor to performance (and then only -0.1%). The major positive stock contributors were Alumina and Origin (adding 1.8% and 1.0% to Fund return respectively), together with Telstra (0.6%) and Medibank (0.5%) both making meaningful contributions. Over the course of the month the net equities exposure of the Fund increased by 3.2% (30.0% Long Equities vs 26.8% prior month). This was reflected in the percentage of stock positions protected against decline falling by 6.2% (64.4% Hedged Equities vs 70.6% prior month).
At the stock level, the largest portfolio weight changes on an unhedged basis were Alumina (-2.1%) and Regis Resources (-1.4%), with Alumina sold down on profit-taking to mitigate concentration risk and Regis’ weight declining on relative stock performance alone, the gold price having fallen as financial markets rallied globally on the implications for growth from the availability of a COVID-19 vaccine and the passing of the US Election.
File:ticker: ETL0725AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://pentalpha.com.au/performance/
lower mid -> monthly reports -> (select related year and month)
asset_class: Domestic Equity
asset_category: Australia Other
peer_benchmark: Domestic Equity - Other Index
broad_market_index: ASX Index 200 Index
structure: Managed Fund