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 February 2020
Both domestic and global markets started the month well, with Wall Street and the ASX200 both achieving new all-time highs mid month. However, the global spread of the coronavirus, which has infected over 90,000 people and killed more than 3,000, resulted in a week-long selloff across global equity markets into month end. The Dow Jones fell into correction territory after declining more than 10%, while the S&P500 and NASDAQ declined 8.4% and 5.9% respectively for February. Due to the outbreak having a measurable impact on domestic sectors, particularly Materials and Information Technology, both local and international SMA strategies recorded declines over the month. Relatively speaking, the Low Volatility was the best performing strategy with a -0.24% decline, thanks mainly to stronger gold prices, while Smart Growth was the hardest hit portfolio, with a monthly decline of -11.00%. The continued weakness in the AUD provided a partial buffer against the selloff seen across global equity markets with the Global Growth Strategy closing -7.45% lower.
Additionally, declines seen by Smart Growth and Global Growth appeared to be marginally offset by IDP Education Limited (IEL), which climbed over 19% following the release of better-than-expected earnings results and commentary that indicated that the short-term impacts of the coronavirus will be minimal. Similarly, while CSL Limited (CSL) did not close higher, it did manage to remain relatively unchanged and only shed -0.84% over the month. US exposed strategies also gained marginal support from Biogen Inc (BIIB) and NVIDIA Corporation (NVDA), which generated monthly returns of more than 14% each. Additionally, AbbVie Inc (ABBV), Seattle Genetics Inc (SGEN) and Tesla Inc (TSLA) overcome the significant volatility experienced at the tail end of the month and recorded returns of approximately 5.8%, 5.0% and 2.7% respectively.
All performance data presented in this document relates only to the start date of the SMA product on June 12. Longer than one-month performance data, therefore, covers the period from 12 June 2019 to 29 February 2020. The performance below relates to the model portfolios, so 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.
