Pentalpha Investment Management’s risk-managed Australian Shares fund has returned 7.45% calendar year to date even after paying for continuous derivative protection over all the stocks in the portfolio.
Fund manager, Denis Donohue, says the Fund adds diversification through the addition of good yield payers beyond the usual Bank stocks, names such as Scentre Group, Star Entertainment and Woodside. Denis is comfortable investing for yield in these non-bank Top 100 stocks because they all have listed options markets in the underlying stock which allows the Fund to cheaply insure against any significant capital losses.
Denis also believes that investors will learn to value this permanent derivative protection over their retirement income. “Retirees know that time is against them to absorb losses from trying to ‘time’ the market themselves, so they really need the fund manager running their money to keep them in the market all the time for the attractive dividend yield offered and insure these quality stocks against any substantial losses,” said Mr Donohue.
Pentalpha Income for Life Performance Report August 2019
Denis Donohue
(07) 3708-0101
denis.donohue@pentalpha.com.au