Mainstream Separately Managed Accounts allow clients to follow Rivkin’s proven investment strategies without having to trade themselves. Our four portfolio options have been designed to suit various different investor goals.
Monthly Update December 2020
December tends to be a quieter month for equities, with volumes declining markedly, particularly over the last two weeks, as Christmas holidays begin. Despite the decrease in activity, historically, December has also been a very positive one in terms of performance. Assessing the performance for 2020, the ASX200 drifted sideways for much of the month, kept to a range between approximately 6,600 and 6,770, before closing at 6,587.1, for a gain of 1.21% for the month. There were pockets of the market that performed strongly however, with many technology and materials companies doing quite well. This can be seen by the performance of the ASX200 Information Technology and Materials Indices which were up 9.4% and 8.8% respectively. On the other hand, utilities and healthcare stock were weaker, with their indices declining 6.8% and 4.9%. US equity markets were strong throughout December, with the S&P500 gaining 3.84%.
Equity markets remain buoyant, despite much of the new flow remaining pessimistic. The two major global events at present remain the Covid-19 pandemic, which shows no sign of slowing. More so, despite the rollout of vaccines across the US and UK, infection rates continue to surge, leading to new lockdowns being imposed. Such measures, while necessary, will only serve to prolong the road to recovery within the real economy. The other major event is the transition in power in the US, which is going less than smoothly, thanks to continued claims for fraud from Trump. At least of this front, this should be well behind us come our update at the end of January, with Joe Biden due to be sworn in on Inauguration day, which is January 20th.
Rivkin offers four different portfolio options for SMA investors; two of these, the ‘Smart Growth’ and ‘Defensive Income’ are focused on ASX investments. During December, Smart Growth returned 3.13%, while Defensive Income returned 1.51%, both net of fees. As a reminder, 50% of the Smart Growth portfolio is allocated to the ASX Momentum strategy, and 50% to the ASX Value strategy. It was the ASX Momentum strategy, which was the better performer in December, gaining 4.37%, compared to the ASX Value Strategy, which gained 1.89%. The ASX Income strategy, which makes up the bulk of the Defensive Income portfolio gained 1.41% for June.
In terms of the remaining two portfolios, the Global Growth portfolio declined -0.46%, while the Capital Stable portfolio gained 0.75%. For Global Growth, approximately 60% of this portfolio is allocated to US shares, with the US Momentum strategy (30%) declining 8.30% for the month, while the US Value strategy (30%) gained 2.57%. While the performance of US Momentum was well below the broader market, it is important to remember that this strategy gained 24.08% the month prior. An additional headwind to our US strategies at present has been the stronger Australian Dollar, which has rallied to be back above 78 US cents. While the stronger AUD has impacted the performance over the past few months, given the cyclical nature of the AUD/USD currency pair, the time will come when AUD weakness works in our favour.
2020 was quite an extraordinary year, both in terms of global events, but also share market performance. The speed of the February to March decline, as well as the relentless recovery since goes to highlight the near impossible task of predicting stock market performance. It is partly for this reason, i.e. the difficulty in prediction, that so many of our strategies use a systematic approach to guide our investments. As it relates to our momentum strategies, which can and do go to cash when markets roll over, with strong uptrends currently in place, our portfolios remain fully invested as we start the new year.
All performance data presented in this document relates only to the start date of the SMA portfolios on June 12, 2019. The performance below refers to the model portfolios, net of fees, which, while providing an accurate representation, will not match exactly everyone’s account. Please use the investor portal or call us to check your account-specific performance.
*Past performance is not indicative of future performance
The above table shows the returns of each portfolio over various time periods after brokerage, management and performance fees. Individual account performance may vary from the results above due to a number of factors including, but not limited to, rounding, small variations in stock weightings and account start date.
Please log in to your Mainstream Account to have the most accurate picture of your accounts performance.
The table below presents performance on a monthly basis for each of the portfolio options. Again, results in this table are after brokerage and fees.
Returns for June represent performance from the launch date of 12 June 2019 to the end of month.
*Past performance is not indicative of future performance
Rivkin also offers its original investment strategies on the SMA platform. The table below shows the returns of these strategies.
Note: All returns in this document are net of fees, 1.5% management fee (1% for capital Stable); and 10% performance fee where applicable with high watermark ( 5% for capital stable) for the complete list of the fees please refer to the PDS issued by The Trust Company (RE Services) Limited a part of the Perpetual Group.
**5.0% for Capital Stable
*1.0% for Capital Stable
This product PDS is issued by The Trust Company (RE Services) Limited a part of the Perpetual Group, ABN 45 003 278 831,AFSL No 235150.
Please search our website or request the PDS to understand full risks and costs of the product before taking decision to invest in it.
All opinions and estimates constitute judgments of Rivkin and are subject to change without notice. These statements should therefore not be relied upon as an accurate representation or prediction as to any future matters.
To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Past performance is not indicative of future performance.
Important Notice:
Performance data shown represents past performance. Past performance is not a guarantee of future performance. Investing and trading carry financial risk, when judging performance please consider the different types of investments and levels of risk associated.
All information and data on this post are provided in good faith and are believed to be accurate and reliable at the time of publication. However, the returns shown in this post might differ from yours due to various reasons such as the time you have entered the market and the amount invested. If you are seeking for clarification, please contact us on 1300 748 546.
