The evolution of the net asset value of our Iberian Portfolio in the third quarter of 2020 was -6.7%, compared with -6.2% for its benchmark index. If we extend the comparison period since we started investing in equities until the end of 2019, it has obtained a return of -37.5%, while its benchmark index has obtained a return of -17.2% for the same period.
As in the International Portfolio, during the third quarter we made few changes in the Iberian Portfolio. One new company (Almirall (XMAD:ALM, Financial)) has entered our portfolio with a weighting close to 1%. On the other hand, we have only completely sold Altri (XLIS:ALTR, Financial) which at the end of June had a weighting close to 0.4%. In addition, we have reduced our exposure to Técnicas Reunidas (XMAD:TRE, Financial) (by -1.6%) because of the fall in the share price and Sacyr (XMAD:SCYR, Financial) (-1.4%) partly because of the fall in the share price and partly because of the reduction in the position prior to that fall.
During the quarter we slightly increased (+0.9%) the target value of the Iberian Portfolio, up to €162/unit, compared to a fall of 6.7% in the net asset value, as a result of which the upside potential has risen to 159%.
In the Iberian Portfolio, we are invested at 98% and, as a whole, the portfolio trades with an estimated 2021 P/E ratio of 5.8x, compared to the 14x of its benchmark index, and with a ROCE of 25%.
