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 November 2020
Broadly speaking, November was a good month for equities, both in Australia and the U.S. The major event for the month was the U.S Presidential election, with Joe Biden declared the presumptive winner, despite Donald Trump failing to formally concede at this point. And despite Trump pushing his case of voter fraud in several key swing states, a change in the US President seems all but guaranteed. This has been met by optimism from equity investors, clearly excited by a return to a more predictable administration. Adding to the improved sentiment has been the positive developments as it relates to a Covid-19 vaccine, which has been stated as a key requirement in allowing economies to return to normal, particularly in the US, UK, and Europe, where the number of infections remains high and growing. Over the past month, three of the major pharmaceutical companies have announced that their vaccines are due for release, with the UK being the first major western country to authorize one for use. This week, the UK will begin its initial roll out of the Pfizer/BioNtech vaccine, with health care workers and the elderly in care homes amongst the first groups to receive it.
In terms of market performance, while the main indices, being the ASX200, and S&P500 were up strongly, the gains were concentrated in certain sectors of the market, particularly those which will benefit from economies reopening. Such stocks tended to be the ones sold off the heaviest earlier in the year, such as travel, banking, energy, and property stocks. To highlight, the four best performing sectors from the ASX200 for the month of October were energy (+28.37%), financials (+15.23%), telecommunications (+13.63%), and real estate (+13.62%). While on the other hand, the consumer staples Index closed lower for the month, down 0.73%.
The wide disparity in performance across different parts of the market was also evident across the six Rivkin strategies. On the plus side, the US Momentum portfolio gained 24.08% (net of fees) for the month of November, with seven of the ten stocks held gaining over 10% for the month. Moderna (MRNA) was the top performer, gaining 126.4% during November, followed by Pinduoduo (PDD, +54.3%), and Tesla (TSLA, +46.30%). ASX Income was the next best performing strategy, up 7.35% for the month, thanks primarily to its allocation to ASX Blue Chips, which holds the top dividend paying companies from the ASX50. This portfolio holds quite a few energy and financials stocks at present, including Woodside (WPL, +27.7%), National Australia Bank (NAB, 24.8%), and Suncorp (SUN, +22.9%), which all rallied over 20% during November. US Value gained 5.49% for the month, while the ASX Value strategy lifted 2.09%. ASX Momentum was down slightly, declining -0.86% for the month. Partly responsible for the flat performance of ASX Momentum was exposure to two gold stocks during the month, being Saracen (SAR) and Northern Star (NST), both of which fell over 10%. In Australian dollar terms, the gold price fell 9.5% for the month of November, dragging many gold mining stocks lower in unison. Finally, the LV strategy was also weaker during November, declining 1.22%. Again, it was the 25% allocation to gold that was the largest detractor on performance.
Looking ahead, and December tends to be a positive time for stocks, particularly in Australia. Based on data over the past 20 years, the average return for December for the ASX200 has been 1.42%, the second highest monthly average behind April (+1.63%).
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.
