Fund Objective: The Rivkin Global Equity Fund aims to produce positive average annual returns while seeking to maintain a level of volatility lower than that of the MSCI World ex Australia 100% Hedged to AUD Index over the same investment period.

31 March 2021 Unit Price – A$1.0308

Welcome investors to the monthly update for the Rivkin Global Equity Fund (GEF) for March 2021. For March, the GEF fell 0.38%, concluding with a NAV price of 1.0308.

Monthly Commentary

Equity markets for the most part continued their slow but steady recovery from the March 2020 lows, but with a noticeable divergence between sectors. The ASX200 closed at the end of March at 6790, up roughly 1.5% for the month. In the US, the S&P500 closed at 3973 points (+160 points) which was a new all-time closing high. Technology stocks, however, were flat overall despite a late month rally, after a big sell-off in February. For the month of March, the GEF fell 0.38%, concluding with a NAV price of 1.0308.

The theme that accelerated in February continued throughout March, with the rotation from ‘growth’ stocks to ‘value’ stocks. The catalyst for this rotation has been the rapid climb in long-term government bond yields (particularly 10-year yields) as global economic growth expectations have improved and the potential impact that could have on inflation. At least towards the end of March, we have seen a ‘buy the dip’ mentality in these names as the growth stories remain unchanged despite the changing long-term bond yields. Our view remains that inflation is likely to be a short-term phenomenon until we see full employment and sustained wage growth in the US and locally, and the picture for equities therefore remains bright with supportive monetary and fiscal environments and rapidly recovering economies.

Throughout March, we did start to see a noticeable switch out of some of the beneficiaries of the pandemic (such as technology stocks) into some sectors a little left behind such as auto names such as General Motors (GM).

In terms of our quantitative strategies, the Quality strategy has performed well throughout March, outperforming Momentum. In particular, 3M (US:MMM)and Procter and Gamble (US:PG) both gained roughly 10%, whereas the worst performing stocks for the month were Momentum holdings such as Moderna (US:MRNA) and Pinduoduo (US:PDD), down 15.41% and 21.78% respectively. This reversed the performance of February where Momentum outperformed Quality and demonstrates the benefit of holding both strategies to lower overall volatility.

If you have any questions regarding the above or your investments with Rivkin in general, please call us on 02 8302 3605.

Performance

NAV Price Chart

Monthly Returns

Portfolio Composition

Sector Breakdown

Top 10 Stock Holdings

Strategy Weighting

Fund Description & Information

The Fund invests predominantly in listed Global companies listed on developed market exchanges whose characteristics satisfy one or more of the strategies that occupy the portfolio. These strategies include: Momentum, being securities that are enjoying positive price trends; Quality, being companies with robust earnings profiles that are priced favourably versus their peers; and Defensive, being securities that provide a combination of characteristics including fixed income or high yield returns, negative or low short-term correlation to risk markets like equities or outcomes that we consider to be market-neutral. The Fund operates within the context of a rules-based framework that encourages a disciplined, long-term approach to equity exposure among developed global markets.

Important Disclaimer

The Rivkin Global Equity Fund is available to wholesale investors only. Past performance is not a reliable indicator of future performance. The value of your investment may rise and fall, and you may not receive the amount originally invested.

Contact

Thomas Silitonga – Director, Rivkin Asset Management

thomas.silitonga@rivkin.com.au –  +612 8302 3605