December, 2020
The Fund outperformed the benchmark over the December quarter.
Contributors:
Overweight Nine Entertainment Nine Entertainment (NEC, +33.0%) upgraded revenue for Dec as advertising rose from 30 to 40% - brands are trying to get in front of consumers after a tough 2020. While the recent outbreak has the chance to derail this in the short term, we believe the trend will continue from here.
Overweight ANZ The big four banks all performed strongly during quarter, ranging from +16.9% (WBC) to 34.2% (ANZ), as their latest updates got well received by the market. For ANZ, its latest results revealed some trends that are prevalent within the sector. The good news was the bad and doubtful debts (BDD) provisions were lower, which helped drive a better capital position. However margins were softer and the cost outlook was a bit higher due to the need for investment in technology. Pre-provision profit forecasts were cut by 3-4%. There is a silver lining in that the company acknowledges the outlook for BDDs looks better than feared. This could lead to EPS and DPS upgrade in future years.
Detractors:
Underweight Fortescue Metals Group Iron ore miners, including FMG continued to rise on the back of the strong iron ore price – seaborne iron ore surpassed US$160/mt over the month, a price level that was last seen in 2011. End-ofyear restocking, as well as concerns that recommendations on the government inquest into the Juukan Gorge incident may have some impact on supply.
Overweight Saracen Mineral Holdings Gold continues to sell-off amid the rise of the long-term bond yields, as investor’s need for safe haven reduces for now. This saw gold miners, including Saracen Mineral pull back during the quarter. Nevertheless, the production report from October showed that the miner remains on track for FY21 guidance.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/164222480.pdfasset_class: Domestic Equity
asset_category: Australia Large Geared
peer_benchmark: Domestic Equity - Large Geared Index
broad_market_index: ASX Index 200 Index
manager_contact_details: Array
ticker: RFA0130AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
https://investmentcentre.moneymanagement.com.au/factsheets/mi/lte6/pendal-geared-imputation
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fund_features:
The Fund aims to provide a return (before fees, costs and taxes) that exceeds the S&P/ASX 300 Accumulation Index over the long term.This Fund is designed for experienced investors who want the potential for long-term capital growth and tax effective income, diversification across a broad range of Australian companies and industries and are prepared to accept high variability of returns. The Fund will primarily invest in a geared portfolio of Australian shares, including Australian listed property securities and convertible preference shares that offer above average income returns. The Fund may also hold cash and may use derivatives.
structure: Managed Fund